Thank you mum24kids. So, my first step is to obtain the W-9 and have the independent contractors fill it out. I then go to the site (I looked at it briefly) after 12/31/xx and simply follow its directions under the "1099" section and let them take it from there? I would have nothing else to do other than file the copies I receive? ( I will receive copies of what has been filed, won't I?) Thanks again.
The easiest way I've found to do it is to require that they submit their tax information on the W-9 form with the contract, or at least to specify that there will be no payment until the completed W-9 form is received. Then I use the tax filing service at
FileTaxes.com Easy 1099 & W-2 Filing for Businesses
to file the 1099s at the end of the year. It's $3-4 per 1099, and they mail the 1099s and complete all the various filing requirements. It is the most painless way I have found to get the 1099s done properly. I've used them for at least 4 or 5 years; it's a great service.
By any chance is there a CPA out there who issues 1099-Misc's for the independent contractors who come into the schools for enrichment programs as mentioned in the original post? Could you list the specifics of the process (W-9, 1099, filing of originals/copies for state and federal agencies etc.)? I want to get a better handle on exactly what has to be done in practice rather than just in theory. Thanks very much!
I had looked into this for our group and found that the basic answer is "yes" if the person you have in is truly an independent contractor (not a corporation- some individuals are incorporated in their trade) and you are paying them $600 or more annually (total for the year) for a service in the normal course of your business. A W-9 would be filled out by the individual and then the 1099-Misc. would be filed. I am planning on asking a parent/CPA who is familiar with the process to walk me through it the first time so I know that I am doing things properly. Would any CPA's familiar with this process care to elaborate or correct me if I am missing something?
Our PTO pays people (authors, illustrators, craftsmen, historical actors, etc.) to come to our school to enrich the curriculum. In some cases, we pay these people more than $600, which I think means we should file Form 1099-MISC (miscellaneous income) for these "independent contractors."
Does anyone else do this, or am I just making work for myself?
