Just a reminder to all our business clients that paid Subcontractors in 2019:
The due date to send 1099s to a subcontractor and a signed Form 1096 to the IRS is January 31st! The IRS penalty for missing the January 31st deadline is $100 per subcontractor.
If you would like Storen Financial to prepare your Form 1099s, we need the information no later than January 15th in order to ensure that we get the 1099s prepared and electronically filed by January 31st.
Please send the information via our secure link. We want you to be safe with your information and that of your subcontractors.
Subcontractor information we’ll need to prepare your 1099s
- Name or business name
- Tax ID or Social Security #
- Amount paid (only need to send 1099’s for those paid $600 or more).
Typically, you need to supply a 1099 to independent contractors, janitorial services, third-party accounts, third-party public-relations firms that are not on your regular payroll or any other company or worker that you paid for services that is not on your payroll. You do not need to send a 1099 to a corporation or material supplier. You are required by the IRS to have a completed W-9 for each subcontractor or business each year. Click here to download the W-9 form.
Our fee to prepare 1099s is $120 plus $5 per subcontractor. (For example, if you had 3 subcontractors your fee would be $135.) If we receive your information after Jan 15th the fee will increase to $240 plus $5 per subcontractor.
If you have any questions about whether you are required to send 1099s, please contact us.
Blog by Susan Arnold – Operations & Administrative Manager
Learn more about Susan and the rest of the Storen Financial team here.