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subcotractors

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need info on sub contractors...
need info on sub contractors ,amounts having to claim ,1099 forms
Submitted: 13 years ago.Category: Tax
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Answered in 11 minutes by:
10/12/2004
Tax Professional: T. R. Miller, The SunTaxMan, Public Accountant , Tax Preparer replied 13 years ago
T. R. Miller, The SunTaxMan
T. R. Miller, The SunTaxMan, Public Accountant , Tax Preparer
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Satisfied Customers: 148
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I am not sure what "info" you seek. If the following does not answer your question(s), please provide further information.


The threshhold for reporting is $600.00 or more paid in any calendar(fiscal) year, i.e., if you pay $600.00 or more to a sub-contractor (including vendors), you need to issue a Form 1099. The only exceptions to this are:


 -  if the sub-contractor is incorporated - no 1099 requirement.


 - if the sub-contractor, or vendor, is an attorney - here the threshhold for 1099 filing is $1.00, not $600.00 (fees paid in the course of your business activity - not personal attorney fees.)


Form 1099 is available from www.irs.gov. Please note that this form still has the requirement that Copy A and the Form 1096 (cover summary) must be printed on an acceptable OCR (optical character reader) form (you cannot print on plain paper). I have these required forms available for client reporting. The remaining copies of the form (those intended for recipients and your files) may be printed on plain paper. Also, if you are required to withhold taxes on any of these payments, you will need to send a copy to the state whose state income tax has been withheld.


If those sub-contractors you use have employees, Workers' Compensation insurance, or liability insurance you need to have their insurance carrier issue you a Certificate of Insurance to document that coverage - other wise you will need to include the monies you pay them in your own Workers' Compensation coverage and/or liability insurance coverage.


For your records, you should obtain a Federal Form W-9, from the sub-contractor, as documentation of their Social Security number or Federal Employer's Identification number (FEIN).

   
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Tax Professional: JBE, CPA, Certified Public Accountant (CPA) replied 13 years ago
JBE, CPA
JBE, CPA, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 137
Experience: 25 Years Experience
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You will need to define what you mean by subcontractor. Are you an independent contractor or are you self employed?

You question has a lot of implications.

JBE, CPA
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