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Jan19

Can an individual write a 1099?

If I worked for a paint company that issues a 1099 at the end of the year but I paid someone out of that money to help can I issue them a 1099 even though I don’t have a business license or workers’s comp? I had assumed we would be 1099’d individually. I was given the cash payment to distribute to who I had come help with the work.

Yes, an individual can issue a 1099 to another individual if the compensation exceeds $600. Less than $600 doesn’t require a 1099. The purpose of a 1099 is to report payments you made in the course of your trade or business. Now, whether you should issue a 1099 in your situation is a question for an accountant. Remember, it’s not as simple as just giving the individual the form. The proper form must be accurately completed and sent to the individual, IRS, and possible state tax authority. Further, there are submission deadlines. It’s really best to seek the advice of a tax specialist.

This entry was posted on Tuesday, January 19th, 2016 at 9:01 pm and is filed under
Compensation.
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