When should I file a 1099?

Not sure whether you should file a 1099 for the contractors around your office? Read this article for helpful tips on whether you should and how to do it!

In this article you'll find answers to the following:
  1. Contractor VS Vendor
  2. Filing requirements
  3. How to file a 1099
Contractor VS Vendor

A vendor is a person or a business who sells products to a multitude of customers. On the other hand, a contractor is a person assigned specific tasks in an organization that has a set completion date.

Examples of Contractors: Cleaning service, lawn care company, painters
Examples of Vendors: Shred-It, Amazon Business

Here's the difference between your employees and contractors!

Filing Requirements

Key Items to Look Out For:
  • Receives more than $600/year 
  • Not an S-Corp or C-Corp
  • They've filed a W-9
  • You've paid them directly (not via 3rd party platforms)

Still unsure? Check out one of our Payroll Partners, ADP's, 1099 Article!

How to File a 1099

First and foremost, if they haven't already, make sure your contractor has completed a W-9 and sent it to you to keep for your records (you are required to keep it on file for at least 4 years).

PRO TIP: Although your contractor is responsible for their own taxes, it's great to remind them to to exempt themselves from withholding! 

Next you have until JANUARY 31st to get all of your 1099s filed! Before you start sweating, don't worry Club Capital can file your 1099s for you, just ask your Account Manager! You can also double check if your payroll company, like our Payroll Partner Gusto, can mail them on your behalf.

If you have a Gusto account, it's fairly easy and cost effective to have it done by them:

If you choose to D.I.Y. make sure you send the 1099-NEC to the IRS and your contractor by the last day of January. If that happens to fall on a weekend, you have until the following Monday!