It’s hard to believe that year-end reporting for employees and independent contractors is right around the corner. Taking the time NOW to review your files is a great way to set yourself up for an easy reporting season in January. We recommend that a W-9 is requested as part of all vendor contracts and before the first check is cut to a vendor.
How to Handle Your 1099 Reporting
The IRS is becoming increasingly strict on 1099 reporting. Penalties can be up to $260 per 1099 if you:
– Don’t file correct information return by the due date and a reasonable cause is not shown
– File on paper when you were required to file electronically
– Fail to report a Taxpayer Identification Number
– Report an incorrect Taxpayer Identification Number
– Fail to file paper forms that are machine readable
– Fail to provide a payee statement by the due date
– Don’t provide required information on the statement
– Incorrect information is shown on the statement
Keep W-9s on file and update annually to make sure you have the most current information for your vendors. Now is the time to review your files to update any changes to the name or address for existing vendors and to make sure you have a W-9 on file for vendors first paid in 2018.
How DHJJ Can Help
For specific questions regarding reporting for independent contractors, please contact DHJJ at 630-420-1360 or fill out the form below.