A Form 1099-MISC is sent to individuals who receive at least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest and/or to individuals who received at least $600 in rents, prizes and awards, and other income payments. Form 1099-MISC must be furnished to the recipient by January 31. For more information, refer to the IRS website.
Effective beginning for tax year 2020, a Form 1099-NEC is sent to individuals who receive at least $600 for services performed by someone who is not an employee and for payments to attorneys. Form 1099-MISC must be furnished to the recipient by January 31. For more information, refer to the IRS website.
For 1099-MISC or 1099-NEC inquiries, email email@example.com or call 215-898-2626.
Manual 1099 Process
This process applies to individuals who are paid $600 or more outside of BEN Financials or Greenphire ClinCards, which each have their own 1099 generation processes. This includes payments via petty cash, gift cards, etc.
Employees must collect W-9s for payees who will meet the $600 payment threshold and store these documents until the end of the calendar year. It is best practice to keep a running spreadsheet throughout the year of all payments. Accounts Payable provides a template that you can use. The completed spreadsheet and all relevant W-9s are due by January 8, 2021. Please send via SecureShare to Renee Nowaczyk at firstname.lastname@example.org.