Why Form 8865 Contractors 2024

When someone does work for you as an independent contractor, you'll need to send them a 1099 at the end of the year so they can report their income to the IRS. As a general guideline, if the contractor does the work of an employee but they aren't an employee or a corporation, then you need to create a 1099 for them at the end of the year. If you have questions about whether you need to send a 1099, this guide can help. As always, your accountant is your best resource when you're in doubt. You can set up 1099 tracking the first time you pay your contractor. As you add the contractor as a vendor, check track payments for 1099 and enter their tax ID. For most independent contractors, this is probably their social security number. If you don't do this at first, you can always go back and do it later. When you enter a check, be sure to select an expense account that makes sense to you to help you track the contractor expense. Be sure to make a note of which expense account you use because you'll need to know this later. QuickBooks tracks this check and adds it to the contractor's 1099 when you create the form. One thing to remember is that the expense may include payments to the contractor that should not appear on the 1099. For example, you could pay a vendor for work they did and equipment you rented from them. The payments for work should go on a 1099, but the equipment rental should not. To keep things separate, use a separate line for each expense and assign different accounts to each. Another thing to remember is that if you pay the vendor with a credit or debit card, you don't need to...