Let’s see in more detail who should fill it out

Form 1099 applies only to those who work as a self-employed or who are independent contractors. This applies to firms that work with freelancers or remote workers, which you have accrued more than $ 600 during the year.

So if you work only with full-time employees, you cannot worry about filling out contract employee tax form 1099.

What should be in the form of a 1099-miscellaneous

This document must contain the identification number of the person you paid the reward to. In this regard, be sure to ask the person with whom you cooperate, his tax number. Without this, you will not be able to send him a form 1099-miscellaneous. It is desirable to request this number from the employee at the very beginning of work. You will also need the full name and address of the person you are working with.

What blank to choose

The most important condition is that you have to submit a 1099-MISC authorized by the IRS. If you do not, the least that you may face – a fine. Therefore, you should not download the 1099 contract template the IRS site, where it is placed only as an example to fill. The necessary document can be purchased at stationery stores. And yet – you filled out the form must be read by a scanner.

Filling out 1099 blank

You must insert an ID in the appropriate field. Actually, you’re gonna need two of these. The first is for the employer firm, and the second is for the employee who provided services or performed work under the contract. It depends on what kind of business you do. Whether you are a self-employed, independent contractors, firm or Corporation. If this number is unknown to you, take care to find out.

Amount of payment

In column 7, you have to specify the exact amount that was paid to your independent contractor throughout the tax year. This is done, of course, only on the condition that this amount exceeded $ 600 per year.

What else

If you withheld any taxes from your contractor during the year, you will use to provide information about this. This could happen for one reason:

  • your partner did not submit form W-9 on time. The same applies to the failure to provide a social security number or ID.
  • your partner is a citizen of a foreign country. In this case, you must deduct interest from his income, provided that there is a tax exemption agreement between your countries.


Reason The retention amount
No information about the TIN or social security number 28%
Foreign workers 30%