PREPARING TO FILE 2019 FORMS 1099 Contents Special Interest Arcles 1099-MISC 1 W-9 Form: Required or Not? 2 E-Filing News 2 Trade or Business 3 Aorney Fees 4 Legislaon in the News 4 Individual Highlights Penales 2 Expense Reimbursement 3 Form 1099-NEC 3 1099-MISC Forms due January 31, 2020 If you made payments of more than $600 in the course of your trade or business to a person who is not an employee or to an unincorporated business, you need to file Forms 1099-Misc by January 31, 2020. You will also need to report payments of more than $10 in gross royales or more than $600 in rent. This form is used to report prizes and awards as well. Payments to corporaons are usually exempt from 1099-Misc reporng requirements EXCEPT when paid more than $600 for: medical and health care payments (including veterinary fees), aorneys’ fees, aorney gross proceeds and a few less common circumstances. Some examples of when 1099-Misc forms are required are: consultants, lawyers, accountants, bookkeepers, landscapers, doctors, veterinarians, exterminators, cleaning or maintenance companies, plumbers or electricians, repair or building contractors, and photographers. This is not an all-inclusive list. Please read our arcle, ‘W-9 Form: Required or Not?’ to learn how to verify if a payee is a corporaon. Personal Payments PREPARING TO FILE 2019 FORMS 1099 | SOBELCO | 973-994-9494 DECEMBER 2019 Only payments made in the course of your trade or business are reportable. Personal payments are NOT reportable. While payments made by individuals not in business are clearly personal, payments from other acvies such as trusts, vacaon home rentals or rental properes can be more complex. Read our arcle, “Trade or Business?” for more informaon.
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Transcript
PREPARING
TO FILE 2019
FORMS 1099
Contents
Special Interest Articles
1099-MISC 1
W-9 Form: Required or Not? 2
E-Filing News 2
Trade or Business 3
Attorney Fees 4
Legislation in the News 4
Individual Highlights
Penalties 2
Expense Reimbursement 3
Form 1099-NEC 3
1099-MISC Forms due January 31, 2020 If you made payments of more than $600 in the course of your trade or business to a
person who is not an employee or to an unincorporated business, you need to file Forms
1099-Misc by January 31, 2020.
You will also need to report payments of more than $10 in gross royalties or more than
$600 in rent. This form is used to report prizes and awards as well.
Payments to corporations are usually exempt from 1099-Misc reporting requirements
EXCEPT when paid more than $600 for: medical and health care payments (including
veterinary fees), attorneys’ fees, attorney gross proceeds and a few less common
circumstances.
Some examples of when 1099-Misc forms are required are: consultants, lawyers,
If you would like us to prepare your 1099s for the first time, please contact
Norma Ribeiro-Simoes at 973-994-9494 to arrange for a personalized template to
be sent to you.
We prepare 1099s for many companies. Submit early for the fastest response
time! Our busiest time is the week of January 20th—26th.
We will not e-file without an authorization from you. Once you receive your 1099
package for review alert us immediately with any corrections or return the
authorization for us to file your 1099 Forms.
Be ready! Go through your vendor history now and provide each vendor you believe may need a 1099 with a blank W-9 if you do not already have one on file.
Legislation in the News (but not passed YET!) Lawmakers in New Jersey are looking to greatly expand the definition of an official
employee which may cause many currently classified as independent contractors to fall
under the employment umbrella.
A bill endorsed by Senate President Steve Sweeney has cleared committee and would
clearly define a worker as an employee even if they do work outside of all the places of
business of the enterprise for which the services are performed. Current law uses
where the services are provided as one of the three determining factors of whether a
worker is an independent contractor or an employee.
The legislation, as currently written, would also classify the worker as an employee if
they are “customarily engaged in an independently established trade, occupation,
profession or business of the same nature as that involved in the work performed.” This
is an especially important point for those in such industries as construction, trucking or
medical services where workers are commonly paid on a contract basis and have their
own established businesses in the same trade as the one contracting their services.
Though the bill provides exemptions for some types of work (currently accounting and
real estate industries but more may be added), the majority of industries would fall
under its requirements.
Although not yet law, it is a good reminder to become knowledgeable on worker misclassification issues and ensure your organization is following current rules. We will monitor the news and keep you updated on future developments through postings on our website, www.SobelCoLLC.com and email blasts. To ensure you receive all news blasts from us, please contact Colleen Logan at [email protected] with your name and email address.