1099 filings for 2020 are due January 31, 2021 for 1099 required vendors; such as, independent contractors, non-employees, and landlords.
The Big Change:
There now are two reporting forms that affect you – the 1099-MISC we previously had, and the new 1099-NEC.
The 1099 NEC is for Non-Employee Compensation to break out payments to non-employee type workers like contractors, accountants, consultants, repairmen, and the like, over $600 per year. All the above types of non-employee workers who are Corporations, S Corporations, and LLC’s reporting as S Corporations are still exempt.
The 1099 MISC is still the form to report rents paid, payments to attorneys, and other miscellany payments over $600 per year to non-corporate vendors (except it is for all attorneys)
Definitions for a 1099 required vendor:
A '1099 required vendor' is one who is paid from your business a lump sum in contract labor/fees in excess of $600 per year, and could include parts or materials. (For example, a marketing rep and physician not paid as an employee are 1099 required vendors. A repair person (plumber, electrician, etc.) that bills you for labor and materials on their invoice is also a 1099 required vendor)
Corporations, other than attorneys, are NOT 1099 required vendors, under the corporate exemption to 1099s. All attorney firms require a 1099.
All other entities (such as partnerships or LLCs that report as a partnership) could be, and most likely are, '1099 required vendors' if they meet the criteria indicated above.
If you wish to request assistance in the preparation of 1099’s, please reply A, B, or C:
____ A) My office does your accounting, and you are expecting my office to prepare all required 1099s; the below charges apply.
____ B) My office does your accounting, you will handle this requirement yourself, and you want us to furnish you the dollar amounts paid to each ‘1099 required vendor’ from the accounting record we keep. This is a NO CHARGE service.
____ C) My office does NOT keep your accounting record, but you want my office to prepare the 1099s, and you will be providing us the following info: – full name, address, and SSN or EIN of the vendor along with the 2020 dollar amount paid. We’ll need that info by Friday, 1-22-21. The below charges apply.
You should upload such information into the “Transfer” folder in file sharing in MAC.
We always confirm receipt of information with a return email, so if you don’t get our confirmation, that means we did NOT receive your email or other notification.
If you engage us, we will submit the 1099s to the appropriate government agencies, and send copies to your 1099 required vendors (We pay the postage), based on the final info you give us.
Our fees for this service are as follows:
1-3 Form 1099s issued by us - $80
4-6 Form 1099s issued by us - $120
7-10 Form 1099s issued by us - $170
11-15 Form 1099s issued by us - $200
Over 15 1099s $200 and up, ask for a quote if you want to know the exact fee.
You must submit all required information to us by 1/22/2021 if you would like us to get these postmarked for you by the due date, January 31st.