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1099 Forms
Per the law 1099s need to be sent to independent contractors by January 31, 2012.
Any independent contractor that you pay $600 or more for services rendered in the course of a trade or business throughout 2011 needs to receive a 1099. If your independent contractor is incorporated they do not receive a 1099 unless it is payment for legal or medical services.
Information needed by me to prepare the 1099:
From you:
- Your business name and corresponding tax ID number. OR
- Your name and social security number. The name must be the same as what appears on your social security card.
- Your business address.
For the recipient:
- The recipient’s name as it appears on their social security card and the social security number. OR
- The recipient’s tax ID number and name of business as it appears on the original application for the tax ID number.
- The recipient’s address
- Total amount of payments in 2011. Do not include reimbursements.
The data needs to be FAXed, emailed, mailed or dropped off to me at the office. Please do not give the information over the phone.
The charge for 1099s is $30 for the first 1099 and $6 for each additional 1099. Any time involved in getting missing data or organizing the data sent will be charged for over and above these fees.
The deadline for me to receive the 1099 data for 20 independent contractors or less is January 15.
The deadline for me to receive the 1099 data for more than 20 independent contractors is January 10.
A CHANGE FROM PREVIOUS YEARS IS THAT WE WILL NO LONGER BE SENDING YOUR INDEPENDENT CONTRACTORS THEIR 1099s DIRECTLY. The 1099s and the 1096 transmittal will be mailed to you in time so that you can then mail the 1099s to your independent contractors. NOTE to receive the 1099s in time for you to mail you need to send me the information per the above deadlines! Any questions regarding 1099s from your independent contractors should be answered by you.
All the best to you for the coming holidays and New Year!
Abi Lusey abi@gnjcpas.com
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