In the modern workforce, it has become more common to work with individuals who would be considered a contractor or a vendor, than an employee. Don’t forget to prepare 1099s for those who need them. Preparing 1099s for Contractors and Vendors involves several key steps to ensure compliance and accuracy. First, gather all necessary information, including the names, addresses, and taxpayer identification numbers (TINs) of all independent contractors and vendors paid $600 or more during the year. Verify the information to avoid any issues when filing the forms. Use the correct form, typically Form 1099-NEC for non-employee compensation. Finally, file the forms on time, with the deadline for sending 1099 forms to recipients and filing with the IRS being January 31, 2025. Accurate record-keeping throughout the year will make this process smoother!

You can use Avalara to file 1099s at a low cost.