What’s a 1099 anyway?
As we enter the last quarter of the year, many businesses are putting together a list of must-dos for the New Year. One item that should be on your list every year is filing 1099s.
Breakwater can help you determine whom you need to file a 1099 for and file on your behalf. As part of our ongoing bookkeeping service, Breakwater Account Associates collect W-9s from your vendors and anyone you do business with to make the 1099 filing process easier.
A 1099 is an IRS form filed for any person or business you paid $600 or more over the course of business the previous year. For an attorney or law firm, a 1099 is filed regardless of the amount.
Here is the IRS definition of who gets a 1099.
• At least $10 in royalties (see the instructions for box 2) or broker payments in lieu of dividends or tax-exempt interest (see the instructions for box 8);
• At least $600 in:
1. Rents (box 1);
2. Services performed by someone who is not your employee (including parts and materials),
3. Prizes and awards (see the instructions for boxes 3 and 7);
4. Other income payments (box 3);
5. Medical and health care payments (box 6);
6. Crop insurance proceeds (box 10);
7. Cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish (box 7);
8. Generally, the cash paid from a notional principal contract to an individual, partnership, or estate (box 3);
9. Payments to an attorney. (See Payments to attorneys), later; or
10. Any fishing boat proceeds (box 5).
Current clients will receive an email from their Breakwater Team with information and pricing for 1099 filings. Our deadline to request this service is Monday, December 2nd. Please let your Breakwater team member know if you would like us to handle your 1099s this year.
Our job is to make yours easy. Let Breakwater handle the work you hate so you can focus on the work you love!