What is a 1099 form?
A 1099 form is a classification that differentiates a contractor over an employee. A 1099 form is given to a self-employed contractor or business owner at the end of the year to report to the IRS how much money was received. The IRS has strict guidelines to qualify for this form.
How to determine if a worker is an independent contractor or an employee?
The IRS makes this decision based off of three factors: behavioral control factors, financial control factors, and relationship control factors.
Is 1099 tax form copies available online is one is lost?
There is no place online to obtain your 1099 form. You can request a transcript of your tax return information from the IRS. However, it often can take the IRS at least six months to put this information into their database. It is usually quicker to ask for a duplicate from the actual company.
What happens if a contractor refuses to fill out a W-9 form for tax purposes?
In the case that a vendor or a contractor refuses to provide a social security number or TIN, IRS regulations state that you are required to withhold 28% from the contractor's pay. You will still need to file a 1099-MISC, leaving the ID field blank. You may be liable for paying the withholding to the IRS even if you didn't withhold the funds. Technically 1099s should be mailed or issued no later than January 31st. You can refer to Page 5 of the instructions under Federal Income Tax Withheld.
At this particular time, there is no legal form to fill out or action that an employer can take to force a person to provide their TIN. You can still submit the 1099-MISC to the IRS and state dept. and write in "Refused to provide TIN" across the recipient identification number section, and send a letter with as much information about this person to the IRS/state.
Should one file an amended tax return if they received a 1099 tax form from a previous year with a different amount on it?
You should contact the company/entity that gave you the Form 1099 and request for them to issue a corrected Form 1099. Depending on which 1099 is the right amount earned will determine the need to amend the return.
If a contractor terminates a non-compete contract before it expired would the non-compete be valid?
Most of the time, if a 1099 contractor voids a non-compete contract prior to the expiry date, there may be grounds for legal repercussion. Depending on the reason they ended the relationship then the non-compete clause may not be enforced.
In Iowa, can a contractor file a wrongful termination suit if they feel they have been terminated?
Iowa is an employment at will state; meaning the employer is free to terminate an employee for any reason other than race, gender, age or other type of discrimination. For a contractor receiving a 1099, there are no binding employment perks or laws for protection.
Can a business set the hours of a contractor working on commission?
If an owner of a company or business begins mandating what hours they have to work, they run the risk of having the person classified as an employee based on IRS regulations. One of the employment 1099 laws is that anyone working under a 1099 employee, has the right to choose what hours, days and times that they perform their duties.