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Using 1099 Forms

The internal revenue service (IRS) requires people who have hired contractors and paid them more than $600 for a year to prepare a 1099 form. Money for materials and business-related payments should also be included when one is adding up this figure. One can be able to get this form by going online and ordering a page from the IRS. 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. When buying the forms, one can get several forms that can last for a while. When you fill a 1099 form you’ll be asked to fill in your federal tax ID which should be your employer identification number or your personal social security number. The 1099 forms must have this number and this is why it is important to get this number if one does not already have it.

One must also fill the contract workers identification using their social security number. For contract workers who do not have social security numbers, the person who is making payment should withhold 28{2f5df23166fa20bdb887a77f1647d22a21a53033b49cc5f6e3c9317910588778} of the contractor’s fee to give 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. In a 1099 form, one is required to fill in the contact information of an independent contract worker and a company. Three copies are necessary when one is filling in the 1099 forms. When filling the 1099 forms one should have two copies that they will need to submit. For proper record keeping, one should keep the third copy in a safe place. The state that one resides must be filled in the 1099 form. When one has the required information it is not difficult to fill a 1099 form. Mailing is one of the ways to submit a 1099 form.

If you choose not to mail it, you can give it to the contract worker who will submit it themselves. People can avoid penalties by filling in the 1099 forms and submitting them. Penalties are also awarded to people who fail to submit the 1099 forms in good time. For additional resources on how to fill a 1099 form one can always visit the IRS pages and they will find information on the 1099 forms. For people who have additional questions they can call the IRS call center for help.

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