Vendor W-9s and 1099-NECs
Vendor W-9s and 1099-NECs
Updated:10/07/2024
APM Help is here to share our updated best practices for filing 1099-NEC forms efficiently and accurately for the 2024 tax season. We’ve outlined key steps and tips to help you have a stress-free filing experience, ensuring you're compliant and on track to meet IRS deadlines.
1099-NEC Deadline: 1099-NEC forms must be filed annually, with the deadline falling on January 31st. As deadlines may change, always check the latest IRS guidelines to confirm:
IRS 1099 Instructions
Steps for Success
1. Collect a W-9 Form for Each Contractor
Ensure that you have a fully completed W-9 form on file for every contractor to whom you may need to send a 1099. This includes both existing contractors who haven't yet submitted a W-9 and any new vendors you're working with. You should request W-9 forms starting today if you have vendors without tax IDs in your software to save yourself some grief at the first of the year.
2. Determine Which Vendors Require a 1099
You are required to file a 1099-NEC for the following vendors:
- Service Providers: Any contractor that provides services, unless they are registered as a C Corporation or S Corporation. Exceptions to this rule are health care and attorney payments. . It's crucial to file for all contractors if they meet the $600 payment threshold.
- Non-Incorporated Vendors: Any sole proprietorship or LLC that provides services and has received payments of $600 or more. These payments are typically reported in Box 1 of the 1099-NEC form. For property management companies or landlords, use Box 1 of 1099-MISC for reporting.
3. Don't Take 'No' for an Answer
Make it clear that a completed W-9 is non-negotiable. It's best practice to collect W-9s before engaging in services or making the first payment to avoid delays during tax season.
4. PayPal and Credit Card Payments Exemptions
You do not need to send a 1099-NEC to vendors paid exclusively through third-party networks like PayPal or credit cards. However, any payments made directly via check or ACH that meet or exceed the $600 threshold should be reported.
Filing with APM Help
At APM Help, we specialize in ensuring your 1099 filings are completed with precision. Whether you need a one-time consultation or full-service bookkeeping, we’re here to help you streamline your filing process and avoid common pitfalls.
Contact us today for a free consultation or a database review as the filing deadline approaches.
Important Disclaimer:
This blog provides general information and should not be construed as legal or professional tax advice. Always consult a certified tax professional or CPA for guidance specific to your business.
Vendor W-9s and 1099-NECs
Updated:10/07/2024
APM Help is here to share our updated best practices for filing 1099-NEC forms efficiently and accurately for the 2024 tax season. We’ve outlined key steps and tips to help you have a stress-free filing experience, ensuring you're compliant and on track to meet IRS deadlines.
1099-NEC Deadline: 1099-NEC forms must be filed annually, with the deadline falling on January 31st. As deadlines may change, always check the latest IRS guidelines to confirm:
IRS 1099 Instructions
Steps for Success
1. Collect a W-9 Form for Each Contractor
Ensure that you have a fully completed W-9 form on file for every contractor to whom you may need to send a 1099. This includes both existing contractors who haven't yet submitted a W-9 and any new vendors you're working with. You should request W-9 forms starting today if you have vendors without tax IDs in your software to save yourself some grief at the first of the year.
2. Determine Which Vendors Require a 1099
You are required to file a 1099-NEC for the following vendors:
- Service Providers: Any contractor that provides services, unless they are registered as a C Corporation or S Corporation. Exceptions to this rule are health care and attorney payments. . It's crucial to file for all contractors if they meet the $600 payment threshold.
- Non-Incorporated Vendors: Any sole proprietorship or LLC that provides services and has received payments of $600 or more. These payments are typically reported in Box 1 of the 1099-NEC form. For property management companies or landlords, use Box 1 of 1099-MISC for reporting.
3. Don't Take 'No' for an Answer
Make it clear that a completed W-9 is non-negotiable. It's best practice to collect W-9s before engaging in services or making the first payment to avoid delays during tax season.
4. PayPal and Credit Card Payments Exemptions
You do not need to send a 1099-NEC to vendors paid exclusively through third-party networks like PayPal or credit cards. However, any payments made directly via check or ACH that meet or exceed the $600 threshold should be reported.
Filing with APM Help
At APM Help, we specialize in ensuring your 1099 filings are completed with precision. Whether you need a one-time consultation or full-service bookkeeping, we’re here to help you streamline your filing process and avoid common pitfalls.
Contact us today for a free consultation or a database review as the filing deadline approaches.
Important Disclaimer:
This blog provides general information and should not be construed as legal or professional tax advice. Always consult a certified tax professional or CPA for guidance specific to your business.
Fill out the form below to get in touch with our team.
Services Tailored for the best Property Managers.
Whether it's rental property management, bookkeeping support, training, bank reconciliations, or emergencies - we're here to help.
Financial & Books Cleanup
Get your books and financials cleaned up to be 100% audit proof.
Trust Bookkeeping
We keep your trust books clean, tidy, and up to date.
Corporate Bookkeeping
Don't worry, we also keep your corporate books clean as well!
And so much more...
We provide a large array of services to help power the best PMs out there.
