Important Steps on How to Generate a Form 1099-MISC.
You need to ensure as the tax season approaches, you needed to have the right information that will help you carry out the right preparation of books of accounts in the right manner. Following the law, if you happen to have contracted independent employees, you are required to generate a Form 1099-MISC. In case you are working out form 1099-MISC for the first time, it may be a tedious procedure, be sure to use the procedure here to be conversant with it. The number one thing is to ensure that you have all the details for the contractors that you hired. In case you have filled the W-9 form it will be easy as the address, names SSN and EIN will be captured fast. The IRS advises employers in case the contractor has not filled or there details missing on the W-9 form, be sure to deduct 28% salary.
Be sure to get the samples then that IRS website will be able to read properly. Include the amount of money that you are paying the contractor under the non-employee compensation. There is need to hire the services of the online financials software so that you do not make any error when keying in the details.
If you hate filling forms, then in this process, you will have to deal with your opinion because everything requires filling. Thus, you might think that after the filling the forms you are done, but there is still more work for you to do. You will not need to keep the filling with your because you will not be helping o anything. Remember that the 1099 copy needs to get to a contractor before the expiry date reaches and this is very crucial. Thus, you need to ensure that you always keep time to avoid being charged with penalty fees of IRS like it has been mentioned to you in this article. Filling form 1096 will be done with IRS. This is the form that is used for summarizing returns totals.
Without having the record for the most crucial filling you did, you will have no evidence to prove you filled. Record Copy C so that you can use it when in need. These records are very helpful and useful especially when questions come, and they concern the info on the IRS. However, you do not need to view the whole process like it is very easy. You can opt to make the work easy when you get a professional who can do the filling and give the best results.