1099s need to be mailed by January 31.

Businesses need to mail their 1099s by January 31. Businesses file a 1099 MISC for payments to independent contractors ONLY for those payments NOT PAID with a credit card or debit card. A 1099 MISC needs for be issued for each person you paid at least $600 to for rents, services including parts and materials, prizes and awards, other income payments, medical and health care payments, crop insurance proceeds, cash payments for fish, any fishing boat proceeds or gross proceeds paid to an attorney.

Report on 1099 MISC only when payments are made in the course of your trade or business. Non profits are considered to be in a trade or business.

Need help with your 1099s call KatTax at 702-796-1040

IRS targets Independent Contractors

Classifying workers as independent contractors can save employers as much as 30% on their payroll costs. As an independent contractor the employer does not have to pay the state unemployment, federal unemployment, no social security and medicare matching plus no workers comp or other benefits. The IRS has hired 100 employees to go after the business most likely to try to evade employment taxes. Those businesses are small firms and self employed individuals. With the newest computer technology the IRS and the States are now sharing information.

If you are unsure of how to classify a worker the IRS offers a free determination service or if you would rather not deal with the IRS call KatTax and we can help you.