Learning The “Secrets” of Services
Using 1099 Forms
A 1099 form is used by a person who has hired a contractor and paid them more than $600 a year and it is a requirement of the internal revenue service. Money for materials and business-related payments should also be included when one is adding up this figure. By visiting the online page of the IRS one can be able to order this 1099 form. Through an office supplies store, one can be able to buy a 1099 form.
When one has filled the form and submitted it, it should be compatible with the IRS scanners. Once you get the 1099 forms from the recommended places they should be scannable. The advantage of buying the forms is that one can be able to get a batch of them which can be used for a period of time. The information that is required in the 1099 forms include a federal tax ID which is usually an employer’s identification number or a personal social security number. People who do not have the federal tax ID need to find out how to get it in order to complete the 1099 forms because submission cannot be carried out without the number.
The social security number of the contract worker is required when filling a 1099 form. The IRS will expect that a person who has hired a contractor will withhold 28% from the contractor’s fee if they do not have a social security number and that the amount that is withheld will be submitted to the IRS. A w-9 form contains their social security number of a contract worker and one can be able to extract it from there.
There is a field in the 1099 form where the total amount that has been paid to a contract worker must be entered. Contact information is required in a 1099 form for the independent contractor as well as the company. Three copies are necessary when one is filling in the 1099 forms. One should know that they will be required to submit two copies of the 1099 forms. The third copy is for your own records and one should keep it in a safe place. It is important to fill the 1099 form with one’s state. Filling a 1099 form is easy when you know what to fill in. The IRS will be able to receive the 1099 forms when one mails it to them.
One can give the contract worker the completed 1099 form so that they can submit it to the IRS. Failure to fill in 1099 forms may result in penalties and one should avoid this. Penalties are also awarded to people who fail to submit the 1099 forms in good time. A place that people can get information on filling a 1099 form if they have uncertainties about something, is by visiting the IRS pages online. For people who have additional questions they can call the IRS call center for help.