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How To Prepare A 1099 Form For A Contract Worker

A 1099 form is used by a person who has hired a contractor and paid them more than $600 a year and it is a requirement of the internal revenue service. This figure should include money for materials and business-related payments. The 1099 form can be obtained when one orders it from the IRS online. Through an office supplies store, one can be able to buy a 1099 form.

The purchased forms must be compatible with the IRS scanners. This is why people cannot just get the 1099 forms from anywhere. When buying the forms, one can get several forms that can last for a while. Some of the details that must be filled in the 1099 forms include a federal tax ID which includes an employer’s identification number or a personal social security number. If one does not have this number, they must find out how to get it because they cannot submit the forms without this number.

The social security number of the contract worker is required when filling a 1099 form. The IRS will expect that a person who has hired a contractor will withhold 28% from the contractor’s fee if they do not have a social security number and that the amount that is withheld will be submitted to the IRS. A w-9 form contains their social security number of a contract worker and one can be able to extract it from there.

The total amount of money that one has paid a contract worker throughout the year should be entered in the 1099 form. The contact details of an independent contractor and a company are required when one is filling a 1099 form. One should have a total of three 1099 forms that they have filled. When filling the 1099 forms one should have two copies that they will need to submit. One should keep the third copy in a safe place and it is for one’s records. The state that one resides must be filled in the 1099 form. Filling a 1099 form is easy when you know what to fill in. The IRS will be able to receive the 1099 forms when one mails it to them.

One can give the contract worker the completed 1099 form so that they can submit it to the IRS. People who do not fill in the 1099 forms can get penalties from the IRS. The 1099 forms must also be submitted in good time for one to avoid penalties. For additional resources on how to fill a 1099 form one can always visit the IRS pages and they will find information on the 1099 forms. One can also call the call center of the IRS.

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