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Critical Steps That You Need to Consider When Generating 1099-MISC Forms.

The tax season is around the corner, this is the time that you could be thinking of closing your books of accounts of the year ending and having time to prepare the tax documents in the right manner. In case you manage a business that may have recently hired independent contractors, there is need to ensure that you get to Generate a form 1099-MISC. It may seem complicated especially if you are doing it for the first time, but with a stipulated procedure it is easy. The first thing is that you need to ensure that you have all the necessary information for the contractors. You need to have filled the W-9 for each one of them too before you start the procedure that will need to include the social security numbers, name, address and the employer identification numbers. You find that in case one of the contractors does not have a filled W-9 or in case he/she has omitted some information, it is your duty to hold 28% of the pay as accordance to IRS.

Be sure to have the samples of the forms that IRS website will detect and fill them in the right manner. Include the amount of money that you are paying the contractor under the non-employee compensation. Finally be sure to fill the contact details of each contractor use the financial software to help you key in the details without human errors.

Filling is very important, and that is why you should always be very active when you are doing it of which you can let another person do it on your behalf. Right after filling is complete; you will need to have the next procedure which involves sending and not done yet. You will not need to keep the filling with your because you will not be helping o anything. Remember that the 1099 copy needs to get to a contractor before the expiry date reaches and this is very crucial. The time when you are sure that penalty is what you will start dealing with is when you have exceeded the set date. Also, the next step is for you to ensure that you have used IRS to mail the form 1096. The return sums summarizing is enhanced by the forms being filled.

Without having the record for the most crucial filling you did, you will have no evidence to prove you filled. Thus, if you forget to have any records of Copy C, then no way you would know what you are needed to do in case of any questions. These records are very helpful and useful especially when questions come, and they concern the info on the IRS. However, you do not need to view the whole process like it is very easy. Instead, it can turn out to be very tremendous and also take so much of your time for busy persons.

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