A Word to the Wise Issuer of 1099s

Dec 5, 2019 | Business, Tax

Every year some of our clients go through a mad rush getting the information needed to file 1099s timely and correctly. How does one stop this madness? A Form W-9 should be obtained from the vendor BEFORE any payments are issued. W-9s can be more easily obtained while the vendor is awaiting approval, when the vendor has more incentive to cooperate than after payment has been made. Actually, without the W-9 information the payer is required to withhold tax at the rate of 24% from all payments made to the vendor.

For every vendor to whom a business pays more than $600 during the year, a 1099 is required to be issued that reports the amount paid along with the vendor’s name, address, AND tax identification number. This identifying information is collected by the payer on the W-9.

 

Photo by Júnior Ferreira on Unsplash

Subscribe to our Accounting, Tax and Business Insights Newsletter

Email Address:
Name(Required)
Privacy(Required)
This field is for validation purposes and should be left unchanged.
An Update on Employee Retention Credit Claims

An Update on Employee Retention Credit Claims

Did you claim the ERC (Employee Retention Credit) and are you still waiting for it to be processed? The IRS suspended processing of ERC claims submitted after September 14, 2023, amid allegations of widespread fraud. There is good news for the businesses that were...

read more
Listen Up Employers, RetireReady is Here!

Listen Up Employers, RetireReady is Here!

If you are a New Jersey employer with 25 or more employees, you may have received a notice that you are required to register your business with RetireReady NJ or certify that you are exempt.  This program was established by the Legislature to help workers in the state...

read more