Don't Delay! Complete Your 1099's Early

Every year we encourage clients to complete their 1099s in the beginning of January, as they are due January 31st.

According to the IRS website, “If you paid someone who is not your employee, such as a subcontractor, attorney or accountant $600 or more for services provided during the year, a Form 1099-NEC needs to be completed, and a copy of 1099-NEC must be provided to the independent contractor by January 31 of the year following payment. You must also send a copy of this form to the IRS by January 31.”

The new Form 1099-NEC has replaced 1099-MISC to report non-employee compensation. Most payroll softwares can easily compile 1099-NEC forms and file them directly with the IRS as long as the correct data is already in the system, which is often the hardest part. If a subcontractor doesn’t complete a W-9, you won’t have the information necessary to file a 1099-NEC.

Coveted Financial is here to assist you and make sure your business completes all tax filings in a timely manner.