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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. The 1099 form can be purchased from an office supplies store.

1099 forms need to compatible with the IRS scanners. Once you get the 1099 forms from the recommended places they should be scannable. When buying the forms, one can get several forms that can last for a while. When you fill a 1099 form you’ll be asked to fill in your federal tax ID which should be your employer identification number or your personal social security number. The 1099 forms must have this number and this is why it is important to get this number if one does not already have it.

One must also fill the contract workers identification using their social security number. For contract workers who do not have social security numbers, the person who is making payment should withhold 28% of the contractor’s fee to give to the IRS. Another way to check out a social security number of a contract worker is through the w-9 form.

There is a field in the 1099 form where the total amount that has been paid to a contract worker must be entered. Contact information is required in a 1099 form for the independent contractor as well as the company. Three copies are necessary when one is filling in the 1099 forms. One should know that they will be required to submit two copies of the 1099 forms. The third copy is for your own records and one should keep it in a safe place. It is important to fill the 1099 form with one’s state. When one has the required information it is not difficult to fill a 1099 form. 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. For people who have additional questions they can call the IRS call center for help.

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