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Form 1099-MISC: Separating myths from realities

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in Payroll Today

Every business hires independent contractors. Independent contractors must receive Form 1099-MISC by Feb. 1. Paper forms are due to the IRS by Feb. 29; e-filed forms are due March 31.

Reminder: The penalties for failing to file 1099-MISC forms correctly and on time aren’t chump change anymore. Beginning with forms filed this year, the penalties jump to $50, from $30, and that’s only if you manage to file correct forms within 30 days of your mistake. Penalties leap further, the longer you wait to file correct forms.

So now is the time to make sure you know the 1099-MISC facts.

Myth #1: Every independent contractor gets Form 1099-MISC

Reality: The only independent contractors who must receive 1099-MISC forms are individuals who do business in noncorporate forms—sole proprietorships, partnerships or disregarded entities or limited liability companies that don’t elect to be treated as corporations—and you’ve paid them at least $60...(register to read more)

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