Wait what? You just sent 1099s.
Why are we talking about this now? Because I want to help you have a smooth 1099 season next year and that starts now!
As a business owner, sending out 1099 forms to your contractors is essential to tax season. Before you can do that, however, you need to ensure you have all the necessary information from your contractors. Below are Faith Resolution’s top 5 tips to prepare for next year’s 1099 season.
- Request W9s before you pay a vendor. If you write checks, put a sticky note on your checkbook to remind yourself to get a W9 first!
- Create a monthly task to review all vendors for W9s on file. You have a reminder if you missed tip one or need to follow up on any initial requests.
- Create an email template requesting W9s so you do not have to retype the same email repeatedly. Include a link to a blank W9 form. You can also request W9s through platforms such as Tax1099)
- Once received, review the W9. Verify recipient information: Ensure you have the correct name, address, and tax identification number for each recipient. You can do this by completing a TIN match through the IRS or tax 1099.
- Have a system for keeping W9s on file. We attach the W9s directly to the vendor in Quickbooks.
By staying organized and prepared, sending 1099s will be much smoother. As always, it’s a good idea to consult with a professional if you have any questions or concerns about the process.
Faith Resolutions offers 1099 processing to our clients and 1099 consults to others who are trying to get ready for the season. Feel free to reach out!