The new year has officially arrived, which means tax season is here and the first tax deadline of 2019 is approaching quickly.
Businesses of all shapes and sizes are responsible for submitting and supplying the IRS and independent contractors recipient copies of the 1099 tax form.
Today, we will cover how to generate and complete your free 1099-MISC Form in time for the upcoming January 31 deadline.
How To Generate & Complete Your Free 1099-MISC Form
What is IRS Form 1099-MISC?
Prior to generating and completing your free 1099 tax form, it is important to ensure you are filing the correct form for your business.
Form 1099 is a series of information returns that report income from self-employment, interest and dividends or independent contractors to the IRS. Various 1099 tax forms correspond to a variety of income reporting types.
IRS Form 1099-MISC reports the income for services performed for small businesses by individuals not classified as employees. Miscellaneous income can include payments made to subcontractors, rental payments, awards, prizes, or substitute payments in place of dividends.
Note: A 1099-MISC Form must be sent to all non-employees compensated $600 or more for their services rendered during the previous calendar year.
What is Considered to be an Independent Contractor?
One of the most vital components of running a successful business is understanding the classification of those who work for you. An independent contractor typically works for multiple companies and has total control over where and when they work. Their pay is also a flat rate and is paid once the task is complete.
Knowing this distinction is important because your responsibilities as the employers will vary based on their classification. If you employ contractors, you will not be responsible for tax withholdings or any health benefits.
What is the 1099 Due Date?
January 31st: If you are reporting Nonemployee compensation (NEC) in box 7 of your IRS 1099-MISC Form the deadline for filing with the IRS for both paper filing and e-filing. Recipient copies of Form 1099-MISC must be received by all independent contractor on or before this date.
February 28: Paper filing deadline for filing IRS Form 1099-MISC
April 1: Electronic filing deadline for IRS Form 1099-MISC
Generate & Complete Your Free 1099 Tax Form
ExpressEfile is the easiest place to generate free 1099-MISC Forms online. Fill out the required information fields then print your 1099-MISC Form or download.
Best of all, there is no limit to the number of blank 1099-MISC Forms you can generate for your small business. In addition to the free options, ExpressEfile also offers affordable upgrades like IRS e-filing and postal mail options.