By ComplyRight –
If you work with independent contractors, you have to file a Form 1099-MISC with the IRS at tax time. Essentially, the 1099-MISC is to contractors what the W-2 is to employees. It covers income amounts, while also indicating you haven’t deducted any federal, state or other taxes.
Here are answers to common questions about filing requirements:
Q: What is the purpose of the Form 1099-MISC?
A: The form is used to report payments of at least $600 to any service provider (i.e., contractor, freelancer, consultant) who isn’t an employee. If the service provided was less than $600, you don’t need to file a 1099-MISC. One monthly payment of $300 wouldn’t require you to file the form, for example. But two separate $300 monthly payments within the same calendar year would. (more…)