1099 Document Preparation

1099 NEC & 1099 Misc Document Preparation

We provide 1099 document preparation services as an additional service to clients for whom we provide tax preparation services.  Pricing for this service can be found on our Bookkeeping & Payroll Rates page.  

IMPORTANT - Filing Deadline: The filing deadline for all 1099 documents is January 31.   IRS assesses late filing penalties for documents filed after this date.

About Form 1099 NEC

If you pay independent contractors, you may have to file Form 1099-NEC, Nonemployee Compensation, to report payments for services performed for your trade or business.  Per irs.gov, you must generally report a payment as nonemployee compensation if the following conditions are met:

  1. You made the payment to someone who is not your employee;
  2. You made the payment for services in the course of your trade or business (including government agencies and nonprofit organizations)
  3. You made the payment to an individual, partnership, estate, or in some cases, a corporation; and
  4. You made payments to the payee of at least $600 during the year.

About 1099 Misc

Per irs.gov a business must file Form 1099-MISC if the following conditions are met for the tax year:

  • At least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest.
  • At least $600 in:
    • Rents.
    • Prizes and awards.
    • Other income payments.
    • Medical and health care payments.
    • Crop insurance proceeds.
    • Cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish.
    • Generally, the cash paid from a notional principal contract to an individual, partnership, or estate.
    • Payments to an attorney.
    • Any fishing boat proceeds.

In addition, use Form 1099-MISC to report that you made direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment.

Information Required to Prepare 1099 NEC or 1099 Misc

We utilize Yearli.com, an online 1099 software provider, to prepare 1099 documents for our clients.  Once we receive all the information described above, along with the required retainer, our staff will complete required data entry on the Yearli software site.We need specific information to properly complete either of these forms for your business. You should provide contractors with Form W-9 to collect the required information, however we can still prepare Form 1099 NEC or 1099 Misc without a properly completed Form Form W-9 if you provide all of the following information to us:

  • Name of contractor
  • Contractor's phone number
  • Contractor's Email address
  • Contractor's mailing address
  • Contractor's DBA, LLC or corporation name
  • Business EIN or Contractor SSN
  • Total amount paid to the contractor for services provided during the tax year.

Document delivery and E-filing of 1099s

After data entry is completed and the required fees have been paid, Yearli will electronically file 1099 documents with the IRS and applicable states.  Copies of filed 1099 documents are provided to the payer business owner and payee independent contractor as follows:

  • Email: If an email address has been provided, 1099 documents will be emailed.
  • Paper Copies via USPS: For an additional fee, document deliver will be made U.S. Postal Service if email addresses have not been provided.

Questions?

Please call (503-646-5600) or come into our office if you have further questions about what we need to provide 1099-MISC and 1099-NEC document preparation services for your business.