You are free to fill out the necessary paperwork and mail it by the appropriate deadlines to the independent contractors and the IRS. For instance, the reporting deadline for the 2014 tax year was February 2nd because January 31st fell on a weekend. Note: The actual dates may vary from year to year. You may also need to report information to the state by a certain deadline, depending on where you live. March 2 (paper filing) or March 31 (e-filing): the deadline to send 1099 reporting information to the IRS.January 31: the deadline to send 1099 reporting information to independent contractors whom you paid more than $600.The IRS requires you to report 1099 income to both the independent contractor and the IRS itself: However, if the same independent contractor also paints your bedroom, you don’t need to report the money you paid him to perform that service. If the charge is more than $600, you need to issue a 1099-MISC form in order to deduct the expense from your taxes. Say you are a freelance writer and you hire someone to paint your home office. It does not apply to personal service expenses. The 1099-MISC goes out when a business pays someone who isn’t on their payroll. Do I have to complete a 1099-MISC reporting form on personal services of more than $600 as well? Independent contractors who earn less than $600 from a single client or agency still have to pay applicable state and federal taxes on that income even though they may not receive a 1099-MISC form. Note: The $600 threshold is for the payer only. As this example implies, $600 is the cumulative figure for a given tax year. But if you add in a spring cleanup, your payments may exceed the $600 threshold, at which point you’ll have to report the income for that tax year. If you use them 10 times, you don’t need to report the payments you made. Say you hire a service to keep your business property neatly mowed and landscaped, and they charge $50 each time. There is a $600 threshold below which the payer doesn’t have to complete a 1099-MISC reporting form. When do I have to report 1099 income in the tax return? Whether you hire people to perform services that help your business run smoothly, or you receive payment for services as an independent contractor, 1099-MISC is the form you’ll need. You can think of the 1099 form as the equivalent of a W-2 form for independent workers both forms are information returns. The 1099-MISC form lets the US Internal Revenue Service (IRS) know what payments have been made to people operating as independent contractors or unincorporated businesses (such as self employed individuals). The yearly summary of this information is known as a W-2 form. When you work for a corporation or state agency, their payroll office tracks employee hours, subtracts social security and Medicaid payments, reports income to the IRS, and cuts the check you receive each payday. Try it FREE What is the 1099 form (1099-MISC form) anyway? This is in Illinois.With Hiveage you can send elegant invoices to your customers, accept online payments, and manage your team - all in one place. With regards to the reimbursement monies should I:ġ: Report it as 1099 income, pay taxes, not count it as a business expenseĢ: Report it as 1099 income, pay taxes, do count it as a business expenseģ: Not report as 1099 income, do not count as a business expenseĤ: Not report it as income, count as a business expenseĥ: Need to get more information from the staffing agencyĪny assistance and insight is greatly appreciated. However, they are both totaled at the top under "YTD Earnings" These are reported separately on the paystub (described as "shift" pay and "reimbursement" in separate sections) I am additionally reimbursed $100 for the hotel/fuel. So for instance for one shift I get paid $1000 (reported as 1099 income). I am reimbursed for travel expenses through the staffing company. I submit my receipts for gas/lodging to the staffing company that fills roles for a hospital. My question is regarding reimbursement for travel expenses. I am an independent contractor for a staffing company (1099 income).
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |