What You Need to Know About 1099 Compliance

As we approach year-end, now is a good time to review payments you’ve made during 2023 to determine if there are any that require a 1099 to be produced.

The timely filing of these 1099 forms is critical, so take the time now to verify that all of your vendor information has been entered accurately into your accounting system – this includes the vendor’s current mailing address and either their SS number or Employer ID number.

In addition, general ledger cost of goods sold and expense accounts should be mapped to the proper box in the 1099 tax forms. 

You can also refer to our annual Year-End Information Reporting Memo to assist you with your subcontractor/independent contractor (Form 1099) and payroll reporting for 2023. The memo briefly reviews 1099 and W-2 reporting requirements, as well as various payroll withholding issues as they pertain to certain fringe benefits. In particular, calculations may need to be performed for some benefits such as group life insurance and company provided vehicles.

Need some assistance? If these tasks have you feeling overwhelmed you might be ready to consider Convergent Accounting. We are here to help if you need us.