1099 Preparation
We prepare and file your 1099 forms for contractors and vendors. You tell us who you paid and we handle the rest, from gathering information to submitting everything on time.
The Requirement
If you paid a contractor, freelancer, or vendor $600 or more during the year, the IRS expects you to file a 1099 form reporting that payment. It does not matter if it was one big payment or a bunch of smaller ones that added up. If the total crossed $600, you owe them a 1099 and the IRS needs a copy.
This catches a lot of business owners off guard in January. You were busy running your business all year, and now you need to track down W-9s, verify tax ID numbers, confirm payment totals, and get everything filed before the deadline. It is a scramble that does not need to happen if someone is handling it for you throughout the year.
Who Gets a 1099
Who Gets a 1099
Any individual or unincorporated business you paid $600 or more for services during the tax year. Think subcontractors on a job site, your bookkeeper if they are independent, the landscaper who maintains your property, or the freelance designer who built your website. If they are not a W-2 employee and they are not a corporation, they probably need a 1099.
The Deadlines
The Deadlines
1099-NEC forms are due to recipients by January 31 and to the IRS by January 31 as well. There is no extension for that date. Miss it and you are looking at penalties that start at $60 per form and go up from there depending on how late you file. The longer you wait, the more it costs.
Where It Gets Messy
The form itself is not complicated. The hard part is having the information ready when you need it. You hired a guy to do some work back in March and paid him with a check. Now it is January and you need his legal name, address, and tax ID number. You have his phone number saved in your contacts, but he is not picking up. Meanwhile the deadline is a week away.
This is the story we hear constantly from business owners around Northeast Florida. The actual filing takes minutes once you have everything organized. But gathering W-9s after the fact, reconciling payment totals across bank statements and cash payments, and making sure nothing slips through the cracks is where people lose hours and make mistakes.
Missing W-9s
Missing W-9s
The best time to collect a W-9 is before you make the first payment. The worst time is in January when you need it yesterday. We help you build the habit of collecting W-9s upfront so that when filing season arrives, you already have everything on file and ready to go.
Penalty Risk
Penalty Risk
Filing late, filing with incorrect information, or failing to file at all can trigger IRS penalties. Those penalties add up quickly when you have multiple contractors. For a small business paying ten or fifteen subcontractors a year, a missed deadline can turn into a real financial hit that was completely avoidable.
How We Handle It
We take the full process off your hands. We review your books to identify every person and business that needs a 1099. We verify the payment amounts against your records. We confirm that W-9 information is accurate and current. Then we prepare the forms and file them with the IRS before the deadline.
If you are also using us for monthly bookkeeping, this becomes even simpler because we already have the data organized throughout the year. But even if you come to us just for 1099 preparation, we will work through your records and get it done right. Pricing starts at $100 for up to five forms and goes up from there based on volume.
Accuracy
Accuracy
Every form is checked against your actual bank and payment records. We verify names, addresses, and tax identification numbers before anything gets filed. An incorrect 1099 creates problems for you and for the person receiving it. We make sure the numbers match and the information is right the first time.
One Less Thing
One Less Thing
January is already stressful enough for business owners. You are closing out the prior year, planning for the new one, and trying to keep operations running. Handing off 1099 preparation means you are not spending your evenings sorting through bank statements and chasing down contractor information. You just let us know who you paid and we take it from there.
The First Coast's Trusted Bookkeeping Partner
The Next Step:
A Free Discovery Call
Tell us where things stand with your books. Whether you're months behind or just looking for reliable bookkeeping going forward, we'll give you an honest assessment and a clear price.