An LLC must submit a 1099-MISC form for each person to whom
it paid at least $600 in a given year in non employee compensation. Most typically,
this requirement applies to services rendered by an independent contractor over
the course of a tax year.
Keep accurate payment records throughout the year to make
end-of-year calculations simple.
Collect Form W-9 from each person who meets the $600
requirement. This form requests the identification number (frequently a
Social-Security number) from the independent contractor. You will need this
information to fill out the 1099-MISC.
Request a blank 1099-MISC from the Internal Revenue Service
(IRS)
Fill in your contact information under "Payer,"
including your LLC's employer identification number (if a multimember LLC) or
your Social Security number (if a single-member LLC).
Fill in the contact information of the independent
contractor under "Recipient," including the identification number she
reported to you on the W-9.
Fill in the total amount paid to the independent contractor
over the entire year under Box 7, "Non employee Compensation."
Fill in the total amount of income tax that you withheld
from these payments in Box 4. For most LLCs, this number will be $0.
Request a blank Form 1096 from the IRS or download a copy
with instructions from IRS.gov. This form is your cover sheet for all 1099-MISC
forms.
Separate copies of 1099-MISC forms according to their
destination.
Submit one copy of all 1099-MISC forms with the 1096 cover
sheet to the IRS according to your assigned address in the instructions.
Mail a copy of 1099-MISC form to each independent contractor
for his own tax records.
Submit a copy of MISC-1099 to the state department of
revenue for the state where your independent contractor resides.
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