Completing Forms W-2/W-3, and getting them into the hands of employees and the Social Security Administration on time, is tough enough. Your stress is further compounded if you also handle Forms 1099-MISC for the company’s independent contractors.
Here’s what you need to know for the upcoming 1099 filing season.
Key dates. Independent contractors who don’t do business as corporations, and who have been paid at least $600 in cash this year, must receive their 1099-MISC forms by Feb. 2, 2015. Paper returns must be filed with the IRS by March 2, 2015; electronic returns are due by March 31, 2015.
If contractors didn’t give you their Taxpayer Identification Numbers (TINs)—Social Security numbers (SSNs) or Employer Identification Numbers (EINs)—before they were paid, you should have been backup withholding on their payments. Report backup withholding to the IRS on Form 945 by Feb. 2, 2015.
NEW SSN VALIDATION PROCEDURE: If you receive...(register to read more)