Every trade or business must file information returns (Forms 1096 and 1099-Misc) each year for certain payments that are made to un-incorporated vendors that were paid $600 or more for the year. A Form 1099-Misc is required for all payments to attorneys and medical and health care service providers even if they are incorporated.
Typical payees for whom you might need a 1099-Misc would be cleaning services, contractors, consultants, Web designers, and professional services.
Failure to file returns or to include correct information can result in a fine of up to $100 per information return to a maximum of $500,000 for a small business.
Information returns are to be given to payees by January 31, 2013.
The attched Form W-9 can be used to request taxpayer identification numbers (TINs). It is important to have a W-9 on file for any vendor that might require a 1099 to be issued.
If you would like for us to prepare your 1099s, we have attached a worksheet for your convenience. Please fill out and return the worksheet or otherwise provide us with the necessary information. You can upload it to your secure client portal through www.tdcpagroup.com or fax it to 503.786.7152 no later than January 18th, 2013 for timely filing.
If you have any questions or need help determining your 1099 filing requirements, please contact Julie Love in our office or email JulieL@tdcpagroup.com for assistance.
Please remember that all health insurance premiums paid on behalf of a greater than 2% owner must be reported on the year end W-2. In addition, the personal use percentage of company autos also need to be reported on the W-2.
Please give us a call if you would like information about this reporting and/or our web-based payroll services.