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The federal government document used to report income paid (more than $600) to a person or an independent contractor for work done, as opposed to Form W-2 for reporting wages of employees. It is the employers responsibility to send the Form 1099 to all independent contractors, so that the independent contractor can report the money he received on his or her Form 1040. (See Form 1040.) The Form 1099 can also be used to report any federal or state taxes withheld from the independent contractor's pay. If there are any withholdings, the independent contractor must attach the Form 1099 to the first page of his or her income tax return.
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