#Form 1099 Misc Box 7

[platinumcrow]

5 Common Mistakes To Avoid When You E-File Form1099 NEC Online For TY 2024

For the 2024 tax year, the IRS requires businesses to use Form 1099-NEC to report nonemployee compensation. Previously, businesses used Box 7 of Form 1099-MISC for this purpose. Both forms may be needed, each with its own reporting specifications. If your business pays $600 or more to independent contractors or service providers not classified as employees, you must file Form 1099-NEC. Nonemployee compensation includes fees, commissions, prizes, awards, and payment for services.

[form1099]

Evolution of the Form: 1099-NEC Takes Center Stage

The protagonist in this tax drama, the 1099-MISC Tax Forms, now shares the limelight with a new player, the 1099-NEC. This fresh contender steps onto the stage, supplanting its predecessor in the portrayal of non-employee compensation, etching its indelible mark in Box 7

[taxseer01]

IRS Form 1099-MISC Box-7 (Non-Employee Compensation #8211; NEC) filing is generally performed by an organization for any payments made to & hellip

[johnnychapman]

Form1099Online is the best e-documenting answer for entrepreneurs, charge professionals, and bookkeepers to record Form 1099 for clients, independent companies, and more. File with us: https://www.form1099online.com/1099-forms/1099-misc-form/

[1099misconlineform-blog]

1099 Misc Form Filing With The IRS

1099 Misc Form Filing With The IRS. The federal tax 1099 Misc form provided by the business or employer to the IRS as well as the recipient. Form 1099 Misc (NEC payments) due to the recipient like contractor as well as the IRS by January 31. If the business or employer registered to file electronically, the deadline for filing 1099 form with the IRS on March 31, 2020.

File Federal Tax 1099 Misc Form

Collect Information To Create 1099-Misc Form

Before you start the federal tax 1099 Misc form filing process, make sure you collect all the accurate information of your recipients. You should filled-out Form W-9 for each recipient, which includes recipient name, address, and Tax ID either a Social Security number (SSN) or Employer Identification Number (EIN). The W-9 will also include their tax filing status, so you can determine to see if you require to provide a federal tax 1099 Misc form for that recipient.

It’s a good idea to determine with each recipient to see if any details have changed before beginning the 1099 Misc filing process. If the contractor has not provided a W-9 form, the IRS says that you can withhold 28% of the recipient earnings and send this directly to the IRS.

Obtain Your 1099 Tax Forms

Once you have the details to work with, it’s time to receive the current year federal tax 1099 Misc form. You cannot use a downloaded Form 1099 or a sample form from the IRS. If you filing on paper, you require to use particular forms that are readable by the Internal Revenue Service.

There are also alternative sources for receiving these online fillable 1099 Misc forms. You can order them from some office-supply stores. We also provide a 1099 Misc form E-filing. By using our 1099 Misc E-filing service, you can easily file a bulk number of federal tax 1099 Misc forms.

Fill Out The IRS 1099 Information Return

With your contractors’ information and the IRS1099 Misc forms handy, it’s time to begin filling 1099 tax forms out. Start with your Federal Tax ID, which could be your SSN or Employer Identification Number. Then add in the contractor’s information like name, address.

Each 1099 information return should also include the Payment amount paid to the recipient. For instance, if a recipient is contractor payment entered in Box 7 under the title Non-employee compensation. If the payer withheld any pay from the recipient like a contractor, the payer will also require to fill in Box 4 or 11 about any federal or state income tax you withheld. Finally, check that their Tax ID is accurate or not. Repeat this verification process for each contractor you have worked with.

Submit The 1099 Misc With The IRS

The next part of the process is to submit the federal tax 1099 Misc forms. You must mail or hand each  Copy B of IRS 1099 tax form to the contractor before the deadline. Failure to meet this IRS due date can lead to the penalty mentioned above. These printable 1099 Misc forms must be mailed to contractors on time because they require them to make a tax return, Recipients report their whole amount earned.

1099 Misc Form Filing With The IRS. You can visit our site www.1099misc-form.com, for more details about the online fillable 1099 Misc form. For information about the fillable 1099 Misc form, you can contact our mail id support@form1099online.com. You can contact our contact number +1 -316-869-0948 for information about the 2019 IRS 1099 Misc tax form.

[justanotherfacet]

I’m not doing taxes THIS year unless any of y’all have relatively basic questions, but I have definitely seen plenty of folks with 1099-MISC with money in box 7 and a few with 1099-NEC forms (both amount to “you got paid like an indy contractor”) who also told me enough background info to make me pretty sure that they should have been W-2 employees. (I live and work in Texas. We’re “right to work” and I have literally been let go for “you’re great when you’re here but you’re just gone too much” when the folks signing my check knew that I was officially disabled, so not having state regs about misclassification fails to surprise me.)

Unfortunately, while I can code-switch for “oh you have a multi-generational household/your ex is worthless but the kiddos still got his last name/you got paperwork showing that you’re a legit foster parent or guardian” and some other common situations that come up when your clientele are mostly working poor and are also often Latine, I can’t magically make you an employee. (The best a big-box type person like me can do for you in that situation is tell you you shouldn’t be paid like a contractor and put “employer paid for all supplies and equipment needed” in the notes because Schedule C’s for self-employed people with no expenses are a big red flag unless IRS believes that you were actually misclassified).

If your 1099-NEC or 1099-MISC has anything federal deducted (fed taxes, Medicare, Social Security) and you didn’t ask them to, that is also a big thing that you could potentially use for a misclassification case. (IDK about state/city/locality stuff because Texas really doesn’t have that the way some places do, but fed stuff is for sure a WTF/”that document isn’t right” red flag.)

Examples of this that I have personally seen under the cut.

The worst I ever saw whose story I actually believed was a dude who I didn’t end up filing but had paper timecards showing that while they weren’t taking federal taxes out they were taking out social security and Medicare, which should not be happening for an indy contractor unless you specify with the people paying you that you want to have taxes withheld and was also both scheduled for 48 hours/week and telling me that he was being forced to work off the clock. I was also talking to his gf on the  phone because she’d worked at the same place and she was “yeah, they pay all their people like contractors and their turnover is hideous because of it”. (I can’t tell for sure NOW, but the last time the internet COULD tell me anything about the restaurant in question they were saying “closed” and I was very much “karma caught up to y’all”.)

The worst I ever saw that I didn’t believe was this young lady with a 15K even handwritten 1099-MISC from her mom, who claimed that she’d been doing it this way for years. Basically, a) even dollar amounts are always going to be ???? unless it’s just one number on a W-2 or something b) handwritten 1099s/W-2s/most standard income documents are also going to be ??? although that’s fine for mileage logs and “I saw this client on this date for this many hours” and some supplies/equipment receipts c) while plenty of people do employ family members when a document’s already a professional “thing that makes me go hmmm...” in a bad way and I have no professional history with y’all I’m not likely to give you the same benefit of the doubt that I usually give my clients. 

If you’re big-box level and just have a PTIN and aren’t a full-blown CPA/Enrolled Agent/tax attorney, all we’re required to meet is “plausible and consistent” and generally with mine that amounts to “if you don’t ask me to believe six impossible things before caffeine I’ll do the best I can to code-switch your info/due diligence answers to something that’ll get you paid because even if an overworked and probably somewhat sympathetic IRS front-liner actually looks at it they’ll likely be ‘asked/answered/documented so I can justify letting it slide if my boss asks’.”

[justanotherfacet]

US big-box tax prep person here for about 10 years. I don’t deal with state/local income taxes (I’m a Texan we don’t have those), don’t do much self-employment beyond “your employer probably should have paid you as a W-2 employee instead of giving you a 1099-MISC with your income in box 7 or a 1099-NEC which amounts to ‘they paid you like an indy contractor’”,  and I am NOT a CPA, Enrolled Agent (person you want if you already HAVE an IRS issue) or tax attorney, but for most “yeah this is confusing to non-pros but I see it a lot” situations I’m willing to assist. 

(You don’t have to send your real data, just fake up your income/Social Security/ID-type numbers and send the questions or forms you’re having issues with. I accept anon asks and can provide an email if you want more info than fits in an ask box).

Also, I would ABSOLUTELY not rec TurboTax, and it’s not because I used to work for a major competitor. I ran my “one W-2, one SSDI form” return through it for shits and giggles one year and was “my proprietary stuff is ANNOYING but it still doesn’t reach this level”. Basically, it’s overkill for a lot of people’s returns and while they’ve cleaned up their act a LITTLE on this there’s still a big-ass set of ProPublica articles on the tax prep industry and it turns out at one point they set the coding to pretty much switch every return to “gotta pay” even if you theoretically shouldn’t have to.

I DO rec (depending on financial circumstances/documents and where you live), TaxAct, TaxSlayer, and OLT (little bitty free filing deal off irs.gov I did a friend’s with it last year) if you’re comfortable filing your own. (Alternatively, most big cities have SOME kind of free assistance.)

And you should definitely get to have the alcoholic drink (or tasty non-alcoholic version) and cake at the end of doing yours.

thinking about how all the adults were absolutely bullshitting when they said that school days are the best days of your life???? like whatever issues i have going on now, i can buy myself little treats like a book or food whenever i want. i feel like im stagnating in my current job so im looking for a new one. imagine if i was bored of school, no one would let me go to a new one. I don’t have to hang out with anyone I don’t want to. being an adult is fuckjng amazing and i was so right to feel trapped as a kid

[form1099]

What Payments Do You Report on Form 1099-NEC?

Do you recruit a contractor? If yes, then you must know about the 1099-NEC latest form. Presently, this 1099-NEC Tax Form is used for reporting non-employee compensation instead of Box 7 of the 1099-Misc Form. Non-employee Payments include the following type of payments to independent contractors like fees, commissions, prizes, awards, and other compensation services.

[livingcorner]

1099-MISC Instructions and How to Read the Tax Form

overview In tax year 2020, the IRS reintroduced Form 1099-NEC for reporting independent contractile organ income, otherwise known as nonemployee recompense. If you ’ ra freelance, income you receive during the year might be reported on the 1099-NEC, but Form 1099-MISC is distillery used to report certain payments of $ 600 or more you made …

1099-MISC Instructions and How to Read the Tax Form Read More »

source https://livingcorner.com.au/what-is-the-difference-between-box-3-and-box-7-on-1099-misc-1637109730/

[file1099]

1099-MISC tax forms for platforms and marketplaces: An introduction

A 1099-MISC form: what is it?

A tax information form called the 1099-MISC is often used to report any payments made to a contractor or service provider. This aids the IRS in keeping track of how much tax revenue contractors and independent contractors will likely generate. In contrast to regular, W-2 employees, who have their taxes routinely withheld by employers, independent contractors, who are considered to be a "business-of-one" when contracting, are responsible for managing their own taxes.

Who submits a form 1099-MISC?

The organization or business owner who pays the service provider or contractor for their services must report such payments to the IRS and submit a copy to the recipient of the payment, who may be a service provider or contractor.

The 1099-NEC will now be used by many companies who previously filed the 1099-MISC to record non-employee compensation in Box 7.

Who gets a form 1099-MISC?

Both the service provider or contractor and the IRS receive copies—either through electronic filing or print mailing—for their records. Normally, businesses are only required to submit 1099-MISCs to service providers or contractors who have received $600 or more in compensation in a calendar year and who are based in the US or are US taxpayers.

Deadlines

The IRS must receive 2022 tax forms by January 20, 2023, via Stripe 1099. By doing this, the forms will be submitted to the IRS and a copy will be mailed to the beneficiaries in time for the January 31, 2023 IRS deadline.

factors for 1099-MISC state filing

Remember that your state can additionally have specifications and distinct due dates for submitting and reporting 1099-MISCs. To find out what paper work you need to file with your state, we advise speaking with a tax advisor.

E-filing 1099-MISCs with the IRS versus mailing them

Anybody who issues more than 250 1099 forms must electronically file tax returns with the IRS. It is permitted to e-file even if fewer than 250 forms are being submitted.

Penalties:-

You may be subject to IRS fines of $50 to $280 per form if any of the following occur:

1.     Don't submit an information return by the due date to the IRS.

2.     Don't deliver the statement to the receiver by the due date

3.     Keep your Taxpayer ID a secret (TIN)

4.     Please report a false TIN.

5.     Declare false information

6.     When compelled to e-file with the IRS, do not do so.

If willful disrespect or neglect is proven, harsher punishments may be applied.

[williamtruax]

NEW Form 1099-NEC vs Form 1099-MISC: What are the Differences and When are They Due?

Last week we reminded you about the deadlines for 1099s and who should get them. However, a new form was added this year, the 1099-NEC (Non-Employee Compensation), and we wanted to share some additional information about the differences between this and the 1099-MISC.

 What is Form 1099-NEC?

Form 1099-NEC is a new tax form the Internal Revenue Service (IRS) introduced this year for reporting payments to non-employees and self-employed individuals. However, the “new” form really isn’t new at all! It was actually last used back in 1986 but the IRS reintroduced it this year to provide business taxpayers with their own form to report payments to independent contractors, starting from tax year 2020.

This means that Form 1099-NEC will replace box 7 on Form 1099-MISC which is where clients used to report non-employee compensation. In short, if you paid more than $600 within the calendar year to a non-employee, you must use Form 1099-NEC to report the payments.

 Why the change?

Before 2015, the deadline for filing non-employee compensation forms, such as the 1099-MISC, was the end of February for paper filing and March 31st for electronic filing. Meanwhile, Form W-2, used to report employee compensation, was due on January 31st. This gap between deadlines meant that taxpayers could file taxes and get tax refunds before their non-employee income forms were even reported to the IRS. This, of course, led to taxpayers reporting lower compensation than what they actually earned.

Then in 2015, Congress decided to enact the Protecting Americans from Tax Hikes Act (PATH Act). With the PATH Act, this under-reporting problem was resolved by moving the deadline for filers to report non-employee compensation to January 31st, aligning it with the deadline for Form W-2. 

However, other business payments (such as rent) were still stuck on the old deadline of February 28th or March 31st. In turn, this misalignment meant that employers had to issue multiple 1099-MISC forms in different deadlines, making everyone involved - the IRS, taxpayers, business owners, etc. - incredibly confused.

Finally, in 2020, the IRS decided to put a stop to all the confusion and reintroduce Form 1099-NEC for reporting non-employee compensation payments only.

 Does Form 1099-MISC still exist?

YES! Form 1099-MISC is the tax form used to report miscellaneous income. It went through a redesign in 2020 to remove non-employee compensation, but it still exists.

The most significant change to Form 1099-MISC is in box 7, which was previously used to report independent contractor payments. In the redesigned version, box 7 is for reporting direct sales of consumer products worth $5,000 or more aimed for resale.  

 Who needs to file Form 1099-NEC?

If your company paid an independent contractor more than $600 during the year, you will be required to file the new Form 1099-NEC. The reportable payments need to be made in the course of your trade or business. Here are some examples of payments you need to report on the 1099-NEC:

Professional service fees to architects, designers, accountants and software engineers

Fees paid by one professional to another

Commissions to non-employee salespeople that are subject to repayment but haven't been repaid in the course of the year

You do not file this form for employees since they have the dedicated Form W-2 for reporting their salaries. You also don't file the 1099-NEC for independent contractors who are a C Corporation or an S Corporation.

You do need to file Form 1099-NEC for each individual you have withheld federal income tax for under the backup withholding rules, no matter how much you paid them.

 So, Who Gets a Form 1099-MISC?

According to the IRS, you use Form 1099-MISC if you paid more than $600 during a calendar year to an individual or company for:

Rent payments (unless you pay them to real estate agents or property managers)

Prizes and awards

Other income payments

Cash from a notional principal contract to an individual, a partnership, or an estate.

Fishing boat proceeds

Medical and health care payments

Crop insurance proceeds

Section 409A deferrals

Non-qualified deferred compensation

Gross proceeds paid to an attorney

Same as with Form 1099-NEC, you are obliged to file Form 1099-MISC for each person you have withheld federal income tax for under the backup withholding rules regardless of the payment amount.  

 Filing deadline for 1099-NEC & 1099-MISC

The deadline for filing your Form 1099-NEC and Form 1099-MISC to the IRS for the prior year is January 31st. However, since Jan 31st falls on a Sunday in 2021, the deadline moves to the next business day, Feb 1, 2021. The same deadlines apply to delivering a Copy B to the service provider since they will need it for their tax returns.

We’d also like to remind you to check your state filing requirements for 1099 forms. Some states including Florida, Nevada, New York, Texas and Washington ensure the IRS forwards them relevant electronically filed forms. California does not, so you’ll likely need to file copies of your 1099s with them directly.

 Penalties

The penalties for failing to submit Forms 1099-NEC and 1099-MISC by the deadline vary and grow depending on how late you are. If you file the forms within the first 30 days after the deadline, the fine will be $50 and increase to $100 if you file before August 1st. However, if you happen to file on or after August 1st, the penalty is $260!

If you can't make it on time, it's best to ask for an extension which you can do by submitting Form 8809.

William D. Truax, E.A. and his friendly team of licensed tax preparers have been helping individuals and businesses with complicated tax forms for over 30 years. He is licensed to represent taxpayers before the IRS and is also a member of the Bar of the United States Tax Court.

If you need assistance determining which 1099 to use or have questions about the new 1099-NEC form, please CONTACT US right away. We’re here to help!

[file1099]

Prepare your business for the new Form 1099-NEC

For business taxpayers that pay or receive nonemployee remuneration, the IRS has released a new form. Any payment to a payee of $600 or more must be reported on Form 1099-NEC, Nonemployee Compensation, beginning with the 2020 tax year.

 Why use a new form?

 Prior to 2020, Form 1099-MISC was submitted to record payments totaling at least $600 for services rendered by a person who isn't recognized as an employee in a calendar year. Nonemployee compensation (NEC) is the term for these payments, and the payment sum was disclosed in box 7.

To eliminate the confusion brought on by different filing dates for Form 1099-MISC that report NEC in box 7 and all other Form 1099-MISC for paper filers and electronic filers, Form 1099-NEC was reintroduced. The Form 1099-NEC, which was last used in the 1980s, will be brought back for usage in 2020 and later, the IRS stated in July 2019.

 Which companies will file?

 Form 1099-NEC will now be used by payers of nonemployee compensation to report those payments.

Payers typically need to submit Form 1099-NEC by January 31. The deadline for 2020 tax returns will be February 1, 2021, as January 31, 2021 falls on a Sunday. No automatic 30-day extension is granted for Form 1099-NEC submission. An extension to file, nevertheless, might be possible in some cases of hardship.

 Can a company obtain an extension?

 For all versions of Forms 1099, as well as for other forms, an extension request should be made using Form 8809. Form 8809's draught was recently made available by the IRS. There are no requests for automatic extensions for Form 1099-NEC, according to the instructions. The IRS will only give one 30-day extension, and only under specific circumstances.

 Requests must be made in writing. Reasons for obtaining an extension are listed at line 7. The following are the justifications for granting an extension to file a Form 1099-NEC and a Form W-2, Wage and Tax Statement:

The filer experienced a devastating occasion in a governmentally proclaimed war zone that made the filer unfit to continue tasks or made vital records inaccessible.

A filer's activity was impacted by the passing, difficult disease or undeniable shortfall of the individual liable for recording data returns.

The activity of the filer was impacted by fire, setback or catastrophic event.

The filer was "in the principal year of foundation."

The filer didn't get information on a payee explanation like Timetable K-1, Structure 1042-S, or the assertion of wiped-out pay expected under IRS guidelines so as to set up an exact data return.

 Assuming you have inquiries concerning recording Structure 1099-NEC or any tax documents, reach us. We can help you in remaining consistent with all standards.

[taxseer01]

Important Changes to 1099-MISC Form Online For 2020-2021

Some heavy changes have been made to the Form 1099 MISC Online by the IRS for 2020-2021.

2020 is coming to an end in less than 30 days. Businesses around the country are gearing up for the tax season starting with the new year in 2021. In light of the Covid-19 pandemic (which continues to restrain a lot of businesses), many hope for 2021 to be a much more positive and successful year, both personally and financially.  

Planning on having a stress-free new year and 2021? Then we recommend that you check out the guidelines and updates that the IRS has enforced on 1099 MISC Form Online and be prepared for a calmer and positive (hopefully) 2021.

So, let’s have a quick rundown on all the major and minor changes enforced by the IRS Form 1099-MISC Online and related forms for the year 2020-2021.

Changes to ‘Non-Employee Compensation’ Payments

Previously, all ‘Non-Employee Compensation’ payments were reported to recipients and the IRS in form 1099-MISC, Box 7.

What’s New In 2020 Tax Season?

‘Non-Employee Compensation’ will now include a new form. The 1099-NEC form has been created to separate the 1099-MISC, Box 7 forms.

What You Need to Do

All you have to do is use the new form 1099-NEC for ‘Non-Employee Compensation’ and the revised 1099-MISC form when filing other types of “Miscellaneous Income” to the IRS.

Changes to 1099-MISC, Box 7

Previously, all the ‘Non-Employee Compensation’ amounts ($600 or greater) were supposed to be reported on 1099-MISC, Box7, and other “Miscellaneous Income” reported using other boxes on Form 1099-MISC.

What’s New?

Now, all the ‘Non-Employee Compensation’ amounts ($600 or greater) that you previously entered in 1099-MISC, Box7 should be reported on 1099-NEC, Box 1.

What You Need to Do

All you need to do is ensure that you use Box 1 in the 1099-NEC form to report all the amounts ($600 or greater).

As a responsible business, ensure that these forms are mailed to the recipients and the IRS on or before the 31st of January 2021. Luckily, 31st January 2021 is a Sunday, so you can mail it on or by 1st of February 2021 (Monday).

Other Amounts on 1099-MISC Online Form that Need to Be Reported in New Boxes

All the other amounts (at least $600) should be reported in a new box as specified below.

Rents –

Prizes and awards

Other income payments

Generally, the cash paid from a notional principal contract to an individual, partnership, or estate

Fishing boat proceeds

Medical and health care payments

Crop insurance proceeds

Payments to an attorney  

Section 409A deferrals

Non-qualified deferred compensation

Pay Attention to 1099-MISC Due Dates 2020

Please note that 1099-NEC is due to recipients and the IRS (postmarked by or on) 31st January 2021.

All 1099-NEC forms must be submitted to the IRS by 1st February. However, depending on the type of transaction, the recipient’s due date will vary.

More information is available on the official website of the IRS here.

Special Focus on the Healthcare Industry

You may be aware that Form 1099 and W-9 audits are being conducted more aggressively in states like California, New York, and New Jersey as some businesses especially the ones in the healthcare industry are misclassifying their employed workers as independent contractors and vendors.

Intentional or unintentional, such misclassifications are on the radar because employees that are being misclassified as independent contractors are being deprived of certain rights and benefits promised to regular employees.  It’s best to comply with the IRS and avoid consequences and serious escalations in the near future.

To the Businesses that Are in a Hurry

As fellow business professionals, we understand that tax season can be a stressful time. However, complying with these changes would only benefit your business in the long run, and helps your business be in the good books of the IRS.

Additionally, not complying with these changes would result in a back-and-forth with the IRS, more stress, and exhausting your resources.

 How to Adapt to These 1099 Changes

While small and medium scale businesses may find it easy to adapt to these changes, large firms and companies might need some extra help. Regardless of the size or type of your business, it is time that you start looking at other options to help you file your forms individually or in bulk – online. This way, filing your 1099 MISC, 1099-NEC, and other forms is no longer stressful, but a breeze.

More than 138,217,000 individuals and businesses have e-filed their tax forms in 2019 alone.

Automate Your 1099 MISC e-Filing This Tax Season

If you have a higher number of employees and finding it hard to adapt to these new updates and changes announced by the IRS, we suggest that you e-file your forms with a reliable and convenient platform, such as Tax1099.

Taxseer is a dynamic e-filing platform integrated with powerful accounting and data management tools, including but not limited to Xero, Bill.com, QuickBooks, FreshBooks, Zoho, and more.

It’s an IRS-approved e-filing platform and adapts well with every business size and type. Taxseer is vouched by leading business news companies, such as Forbes, Inc, and more.

All the 1099-MISC, 1099-NEC, and other forms are state and federally compliant. You can learn more about the salient features of Tax1099 such as easy bulk filing, API integrations, and more.

If you have any questions regarding Taxseer, such as “How to file Form 1099-MISC Online” or “1099-MISC instructions 2020”, feel free to check out Taxseer.com and drop your queries in the comment section below. Found this read interesting? Share it with your friends, Coworkers, and family.

[inform-decisions]

#MISC2NEC What happened to Box 7 on the IRS 1099-MISC form? https://informdecisions.com/irs-1099-misc-vs-1099-nec/

Call (800) 858-5544 / (949) 709-5838 or contact us at https://informdecisions.com/micr-and-security-paper-supplies/

[advancetaxreliefexperts]

I RECEIVED A FORM 1099 AND NOT A W-2 - I’M I NOT AN EMPLOYEE?

At tax time, employees should receive Form W-2 from their employer. If you’ve received a 1099 Form instead of an employee W-2, your company is treating you as a self-employed worker.

This is also known as an independent contractor. When there is an amount shown on your Form 1099-MISC in Box 7, you’re typically considered self-employed.

NEED HELP WITH IRS BACK TAXES, AUDIT REPRESENTATION OR SMALL BUSINESS TAX PREPARATION?

ADVANCE TAX RELIEF LLC www.advancetaxrelief.com BBB A+ RATED CALL (713)300-3965

Review the Difference Between an Employee and

Independent Contractor When you are paid by your employer, the employer withholds taxes, which will be reflected on your W-2. When you are paid as a contractor, however, you have to pay these on your own and you’ll receive a 1099 form instead of the employee W-2 form.

Three basic areas determine if you’re an employee:

Behavioral Control – Whether the business has a right to direct and control how your work is done

Financial Control – Whether the business pays your business expenses and buys your tools

Relationship of the Parties – Whether the business offers you benefits, such as insurance, vacation, or sick pay

What Should I Do If I Am Getting a 1099 Instead of a W-2?

If you are getting a 1099 form instead of a W-2 and think you should be classified as an employee, you should first contact your employer to be reclassified correctly. If the employer disagrees, you can have the IRS make the determination.

You’ll need to file Form SS-8: Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding. You might also need to file a Form 8919: Uncollected Social Security and Medicare Tax on Wages to report and pay your share of these taxes.

GET TAX RELIEF HELP TODAY

If you think that you may need help filing your 2018/2019 tax return or past due tax returns, you may want to partner with a reputable tax relief company who can help you get the max refund and reduce your chances for an IRS AUDIT.

Advance Tax Relief is headquartered in Houston, TX with a branch office in Los Angeles, CA. We help many individuals just like you solve a wide variety of IRS and State tax issues, including penalty waivers, wage garnishments, bank levy, tax audit representation, back tax return preparation, small business form 941 tax issues, the IRS Fresh Start Initiative, Offer In Compromise and much more. Our Top Tax Attorneys, Accountants and Tax Experts are standing by ready to help you resolve or settle your IRS back tax problems.

Advance Tax Relief is rated one of the best tax relief companies nationwide.

#TaxDebtHelp #FilingBackTaxesHelp #TaxReliefHouston #BackTaxRelief #TaxRelief #BackTaxRelief #TaxAttorneysNearMe #TaxReliefFirms #OfferInCompromise #TaxResolution #LocalTaxAttorney #HelpFilingBackTaxes #TaxDebtSettlement #TaxReliefAttorneys #TaxRELIEF #TaxAttorneys #AuditHelp #BackTaxes #OfferInCompromise #WageGarnishmentHelp #AuditReliefHelp #SmallBusinessTAXES