Save Administrative Costs
Filing on your own is time-consuming and expensive, especially if you have multiple Independent Contractors.
Misclassifying a 1099 can be a major issue for your company. We can process 1099 checks either with your payroll or as an independent payroll, so we can track the total you've paid at year end. This way, you don't have to worry about looking back on what you've paid out in 1099 money for the year.
Prevent Penalties & Audits
Incorrect or late 1099s can cost you, and it's multiplied by each form you file.
What is a 1099 Form?
A 1099 form is a series of forms for reporting income received apart from a regular paycheck. The Internal Revenue Service (IRS) refers to these as "information returns," and there are different types depending on the nature of the additional income. Examples included for payroll purposes are Miscellaneous and Rent.
If you employ independent contractors, Precision Payroll Services Inc can take care of filing and reporting your 1099s, regardless of whether or not you use us for payroll services. We'll make sure your form is filed accurately and on time to avoid any penalties or inconvenient and costly audits.
You must send out a 1099 to each entity that you paid rent in excess of $600 annually. This includes landlords that are NOT a corporation; if they ARE a corporation, they do not need a 1099.
Issues with 1099s We Can Help Prevent
1. Not Understanding Form 1099
There are different types of 1099 forms. If you choose the wrong one or merely misunderstand the language within, you may end up with a stressful and costly audit.
2. Not Keeping Adequate Records
We'll let you know what documents and receipts you need to keep.
3. Missing Deadlines
There are financial penalties for missing filing deadlines. These penalties vary and are compounded per form.