2023 Form W-9 & 1099 Check-In
Summer is officially over and as we near the beginning of the 4th quarter, we again want to remind you of the importance of making sure that you are well on your way in gathering the information you will need (or we will need) in order make sure that your 1099s are prepared and filed timely.
Q. Have you obtained W9s for all your vendors/contractors that you have paid for non-employee compensation, services, and rent in excess of $600.00 (Contractors, suppliers, outside services, landlords)? What about attorneys you have paid fees in excess of $600?
- You are required by law to obtain them.
- You can be subject to IRS penalty if you cannot produce them when requested.
- You could become liable for owing and paying 24% of any backup withholding that was not withheld.
Q. Have you begun identifying payments that have been made to vendors/contractors that were paid by credit/debit card and 3rd party processors (Venmo, PayPal, CashApp, etc.)? Now is a good time to start this process if you have to do it manually. Remember, we need to exclude these types of payments from the total amount we report on the 1099s.
- These payments are reported to your vendor/contractor on a 1099-K issued by the payment processor.
- If you fail to exclude these amounts, you are causing the same income to be reported twice to your vendor/contractor.
Q. Do/Did I understand the information that was provided to me about 1099s back in July? If not, have I reached out to Gray CPA for additional guidance?
Q. Do I need assistance making sure that QuickBooks or QuickBooks Online is properly tracking my vendors that will need 1099s? If yes, why haven’t I reached out to Gray CPA yet?
- We are here to provide assistance and support you! If you are struggling or have questions in regards to the upcoming preparation of your 1099s, call us!
If you missed our July email, you can access it by clicking on the link below
Your friends at Gray CPA Inc.