One of the forms that you may be responsible for creating is a federal 1099 form. This form is used to report any amount that you pay to freelance or contracted workers that provide services for your company and are outside of your employee payroll.
How to File Form 1099-MISC for Contracted Workers? At the end of the tax year, you as a business owner are faced with a multitude of responsibilities, not the least of which is getting all of your tax forms out to your employees and contracted workers. One of the forms that you may be responsible for creating is a federal 1099 form. This form is used to report any amount that you pay to freelance or contracted workers that provide services for your company and are outside of your employee payroll. Creating and completing a federal 1099 form is, luckily, fairly uncomplicated. Following is the basic procedural outline to get you started. Step 1: Assemble Required Information You must file a form 1099-MISC for every person to whom you paid over $600 during the tax year. In order to complete this form, you must have the following information: • Payer's name and address • Payer's federal identification number • Recipient's identification number • Recipient's name and address • All income paid • Any tax withholdings • Any medical or healthcare payments • State tax information This is the information required for the most common filing situations. Once you have all of these things assembled for your payee list, you are ready to proceed with how to file form 1099. Step 2: Complete Federal 1099 Forms The next step is to complete your 1099-MISC forms. This can be done by hand or by using an online service, such as Etax.com. The IRS requires those submitting more than 250 forms to do so electronically, but others filing fewer 1099s are highly encouraged to also take advantage of the online filing system. It has the advantage of being easier to correct, submit, and complete, and turnaround time is much quicker than with manual filing. Additionally, if you are unsure about all the details on how to file form 1099, services such as etax.com can help you with the process from start to finish for only a small fee per submission. Step 3: Submit Federal 1099 Forms If you are using an online service, submission to the IRS is as simple as a few mouse clicks. Remember that you must supply a copy of each federal 1099 form to both the IRS and the payee by a certain date. The deadline for payees is January 31st, and the deadline for the IRS is February 28th. Once you submit your forms electronically, you will receive E-mail updates telling you that your forms have gone through, giving you peace of mind that you have done things correctly. Filing your federal 1099 forms does not have to be a nightmare or even a nuisance, especially when you file electronically. Once the process is complete, you can rest assured that your end of the work is finished and that you won't have to worry about it again until tax time rolls around next year. If you are considering filing online, know that the entire filing process will be quick, simple, and easy enough even for novice tax filers. Visit https://www.Etax1099.com and start filing your form 1099 tax.
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