Thursday, March 12, 2009

1099 Basics

June --

If I pay out referral fees of $200.00 per person and it totals over $1,000 per year, do I need to 1099 those people?


Mary --

1099-MISC reports nonemployee compensation -- that is, what you pay to indies who work for you.

Whether or not a 1099 is required is based on what you pay to each person. If you pay an indie $600 or more then you must file a 1099-MISC for that indie.

It is not based on the total you pay to all indies who work for you.

-- June

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