This is an exercise I run every Nov/Dec with my clients to prepare them for the upcoming 1099 filings. All too often we forget to request a W-9 and certificate of insurance from a new subcontractor. If you don't get their tax ID# and mailing address you may never hear from them again and can be responsible for paying income tax on what should be a tax write-off. On top of that, your workers compensation may cost more if you don't have the certificates of insurance at your annual Workers Comp Audit.
Get your blank W-9 with this link.
You need to issue a 1099 NEC (Non-Employee Compensation) for every subcontractor you paid $600 or more to during the year.
You need to issue a 1099 Misc. most commonly for rent paid if you are renting commercial space. Instructions and requirements in the link.
If you don't know how to determine if you've met the threshold, please schedule an appointment with The Bottom Line Bookkeeping & Consulting before the end of the year.
Happy Holidays!
