Form 1099-MISC is used to report payments to non-employees. A non-employee is defined as a person or business who is not employed by your company, such as independent contractors, freelancers, or outsourcing companies. This includes persons such as cleaning services, IT support, or maintenance services.

The IRS instructs that a 1099-MISC form must be completed each person who, in the previous tax year, has been paid for certain amounts. It is recommended to view the IRS instructions for the amount types and their corresponding box number, as these are susceptible to change year to year.

There are some notable exceptions to payments that are not required to be reported on a Form 1099-MISC. However, there are or may be some exceptions to the exceptions. It is always best to consult your tax advisor to determine if you should send out a Form W-9 to request information to a payee.

See the instructions by the IRS for more details.

Information Needed to Prepare Form 1099-MISC

Once you have determined who must receive a Form 1099-MISC, you can request their information through a W-9 form. A W-9 form, like W-4s for employees, will provide you with the relevant information for the recipient such as their name, address, and tax identification number.

After retrieving a completed W-9 from the non-employee, you will use the information provided and the finalized amounts paid to prepare Form 1099-MISC.

Need More Information?

For more information on Form 1099-MISC filing, check out our other blog posts linked below:

BoomTax, The Boom Post, and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors prior to engaging in any transaction.