Small Business Tax Tips – I Forgot to Send Out 1099s by January 31 – What Do I Do Now?
Are you a small business owner who hires independent contractors? If so, you may be required by the IRS to send out a Form 1099-MISC to those people. This article will help you determine your obligation to issue those 1099’s. The basic rule works like this: Form 1099-MISC is used to report total annual payments made to self-employed people who made at least $600 during the previous calendar year. This 1099 must be given or mailed to the contractor by January 31 of the following year. Note: For calendar year 2008, since January 31, 2009 is a Saturday, the deadline has been extended to the next business day (Monday, Feb. 2, 2009). The key here is whether or not the person who worked for you is self-employed. Obviously, this excludes employees. If you have employees, you give them a Form W-2 by January 31 (or Feb. 2) to report their compensation (wages, salaries, bonuses, and withholdings). And this also means you don’t have to send out a 1099-MISC to corporations who provided services to
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- Small Business Tax Tips - I Forgot to Send Out 1099s by January 31 - What Do I Do Now?
