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1099’s tell the IRS that you paid someone non-salary income exceeding $600
Why do they care? Because they want all of their coins, including the ones going under the table.
So, when do you issue one? Send the contractors the 1099 form by February 1st of the following year. Don’t forget to keep track of how much you paid each contractor and what service they did for you because you’ll need to send a copy to the IRS as well. Yup, they want their copy by March 31st. And if you don’t send it to them… you know, they have a monetary penalty waiting for you.
This is a good reminder to stay on top of your bookkeeping so you’re not drowning in 1099s at the beginning of the year! As I always share with business owners, one of the best first hires you can make is a bookkeeper, leave this headache to them. They love doing it!
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Rianka R. Dorsainvil, CFP®️ is the Co-Founder and Co-CEO of 2050 Wealth Partners a virtual, fee-only comprehensive financial planning firm dedicated to serving first-generation wealth-builders, entrepreneurs, and thriving professionals. Rianka also hosts 2050 TrailBlazers, a podcast aimed to address the lack of diversity in the financial planning profession by engaging industry experts and leaders in conversation.
As an award winning successful, millennial Certified Financial Planner professional, Rianka offers a unique perspective not only on the current state of the financial service industry, but on how to stay relevant in an ever-changing world.
Rianka serves as a member of CNBC’s Digital Financial Advisor Council and CFP Board’s Diversity Advisory Group, is a Forbes Personal Finance Contributor, and has been recognized for her accomplishments and leadership within the industry by leading publications and organizations such as Investment News’ inaugural 2017 Women to Watch Rising Star and Wealth Management’s Ten to Watch in 2018. She has been published in PBS NewsHour, Forbes, USA Today, Black Enterprise, CNBC, Women’s Health, and more.