Reminder: Forms 1099 are due January 31st!

1099 Forms are due at the end of the month. This due date pertains not only to the independent contractor copy but also to the IRS copy for any 1099 Forms issued related to non-employee compensation in Box 7.

The classification of your workers as “employees” or “independent contractors” remains a “hot topic” with both the IRS and the State of California.  Please see the recent Orange County Business Journal  article written by our Senior Tax Manager, Richard Warner (below).

Here are some general guidelines to follow:

  • Per IRS regulation, 1099s are due for each non-corporate vendor to whom you have paid during the year:
    • At least $10 in royalties or broker payments in lieu of dividends or tax-exempt income
    • At least $600 in rents, services (including parts and materials), prizes and awards, other income payments, medical and health care payments
    • Gross proceeds of $600 or more paid to an attorney (even if they are incorporated)

We are available to prepare your Forms 1099. For each independent contractor (individual, partnership, LLP, LLC, or attorney) to whom you paid $600 or more during the 2018 calendar year, please provide the following information:

  1. Formal name/business name
  2. Address
  3. Social Security Number or Taxpayer ID Number
  4. Amount paid in 2018

If you have any questions, please contact Karen Reed (karen.reed@smithdickson.com) or Elaine Kazzi (elaine.kazzi@smithdickson.com) and we will be happy to assist you. You can also reach us by phone at (949) 553-1020.