New Year! Did you procure the services of independent
contractors/freelancers during 2008? If so, then you are required to send forms to
those people by January 31, 2009. This year the 31st is a Saturday,
so you actually have until February 2, but don’t delay. 1099-MISC
(Miscellaneous Income) forms are the forms that must be issued by your
business when you pay independent contractors $600 or more for
services. To complete the forms, you need a list of all the independent
contractors, their current address and social security numbers.
You can purchase the forms and envelopes cheaply at Staples ($15.99 for 24 forms) or you can order them from Quickbooks. Make sure to purchase 1099-MISC forms.
Last year, one of my clients picked up the 1099-INT forms by mistake.
If you are using Quickbooks, you can run a 1099 vendor report to get a
list of the total amount paid to vendors. If you don’t use Quickbooks
or another accounting system, then just review your check register or vendor payments online and
add up all payments made to each independent contractors.