TIP 2 – Vendor 1099-MISC Information Returns
Besides W-2″s, businesses are required to provide 1099-MISC”s to any person or business (with certain exceptions) that have been paid more than $600 during the calendar year by January 31st. Start now, by running vendor payment reports and isolating only those vendors that you know MAY need to receive this information tax return. The $600 target is just a starting point. From there you can eliminate Corporations (EXCEPT Legal and Health) from the list of vendors over the dollar criteria. If you haven”t already started to create a W-9 binder, start by sending out the W-9 forms to any vendor that you don”t have a form on file for. The reason you are starting now is that it will take you until December 31st to get these all back in to your vendors. Some of these vendors you may need to send out 2 or 3 reminder notices to get the information you need to provide those 1099 information returns. So don”t hesitate, believe me, you need to start this project now. If you”ve got a binder or folder with past years W-9 forms, review those forms against your payment list and see who you need to get a W-9 form from.