If you pay an individual (who is not an employee) or partnership for “services” rendered and the amount paid for the year is $600 or more, you must file an information return, Form 1099-MISC, with the IRS and provide a copy to the individual.
Form 1099s are required to be filed and distributed by January 31. There is a penalty for failure to file by the date or failure to provide the correct identification number. The IRS may charge a $100 penalty for each incorrect identification number.
If you do not plan to enter your independent contractor(s) payments in your payroll system before the end of the year and would like us to prepare and file your 1099s, then please reach out to us at accounting@simafinancialgroup.com to provide us the independent contractor(s) that need Form 1099s prepared by January 18
