Important Steps on How to Generate a Form 1099-MISC.
As tax season approaches, you are required to ensure that the books of accounts are closed and the payment of workers paid. The law requires every manager to ensure that if you happen to contract the independent workers, you need to fill out a form 1099-MISC. It may seem like a complicated procedure especially if this is the first time that you are hiring and paying the independent contractors, however with the right tools and steps in place, you will find it straightforward. The first thing is that you need to ensure that you have all the necessary information for the contractors. In case you have filled the W-9 form it will be easy as the address, names SSN and EIN will be captured fast. You find that in case one of the contractors does not have a filled W-9 or in case he/she has omitted some information, it is your duty to hold 28% of the pay as accordance to IRS.
Be sure to have the samples of the forms that IRS website will detect and fill them in the right manner. Check from the IRS website, and you will find the samples, you may also order from the office supply store or use the quick books to file the 1099s. Finally be sure to fill the contact details of each contractor use the financial software to help you key in the details without human errors.
Filling is very important, and that is why you should always be very active when you are doing it of which you can let another person do it on your behalf. The moment you have completed filling, you will not need the forms with your, but they will need to reach to the right place. The wrong mistake you can get ado here has the forms while they should be sent somewhere. If you are not careful with sending of the forms on time, this might imply that you are going to have issues with your contractor as to why you had to exceed the dates. Also, for those who lie rushing the last minute, you will be risking from being charged with IRS penalties because you delayed. Also, the next step is for you to ensure that you have used IRS to mail the form 1096. This is the form that is used for summarizing returns totals.
The final step that you will need to do is to get a record of the filling. 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. The entire process mentioned above is very stressful. You can opt to make the work easy when you get a professional who can do the filling and give the best results.