It's that time of year!
Running your own business means dealing with things like W-9s and 1099s. Mysterious forms that the government wants you to pay attention to. I am not the authority on taxes: I highly recommend you have an accountant in your back pocket you can consult with. That said, here are some general guidelines:
Who gets a 1099-Misc?
Anyone who is an independent contractor (generally not a Corporation, but a person or an LLC) who completes work for you that costs more than $600 in the course of the year.
When are they due?
Paper forms must be sent to the individual by January 31st, although your accountant may be able to electronically submit as late as March 31st
Wait, what do I do?
nyone you think you are going to pay MORE THAN $600 TO IN THE COURSE OF A YEAR, you need to give a W-9 to.
For therapists, this means:
- your supervisor
- your therapist
- your consultation group leader if you pay them
- the therapist you sublet from
- your landlord if they are an LLC and not a S-Corp
- your lawyer who drew up your paperwork
- your web designer (if they are an LLC or DBA)
- your housekeeper (if you paid more than $600 to them in the year)
The best habit is to just get the 1099 as soon as you start the relationship. That way you will know if they are a DBA, LLC, or S-Corp based on what they fill out.
You can get a W9 here.
Remember, this is for your business, not for personal expenses.
If you have been tracking your expenditures (you have, right?) then you just need to run a report in Quickbooks or Xero to reflect how much you paid your peeps. In Quickbooks you can run a 1099 report. Anyone you paid over $600 you want to send a 1099 to.
The easiest way to do this on your own is to use a service is Track1099 found here. You just enter the information from the W9 and then the total you paid from Quickbooks and it will email it out. It's AWESOME and easy.