Have you done your 1099’s yet?

A Note From Monique

So, I love sharing cool new things, and I wanted to let you know that one of my fabulous clients (that’s us in the photo at our January 2012 Gold Mastermind retreat) has created an amazing six-week gluten-free mastery program. Her name is Janelle Holden, and she is the president and founder of The Gluten Free Life Coach, a company dedicated to helping people with food sensitivities love life and discover their new favorite foods. It starts March 7th, and she confided in me that she’s only taking 7 people, so sign up soon if you’re interested. You can find out more about it at: http://janelleholden.com/ get-answer/ or contact Janelle directly at janelle@janelleholden.com.

Monique

Featured Article: Have you done your 1099’s yet?

If you started your business in 2011, then you are required to comply with the Internal Revenue Service’s regulations around 1099’s.

What are 1099’s?  They are forms that you, the business owner, fills out and send to your vendors who meet BOTH of  the following criteria:
1/ you paid them by check or cash, not PayPal, credit card or debit card
AND
2/ you paid them $600 or more in 2011.

So, that means that if you paid them $5,000 by credit card, you don’t have to file a 1099.  That’s because the credit card companies and banks and PayPal send that information to the IRS.  But if you paid your graphic designer $760 by check, then you do fill out a 1099.  Also, if your vendors are incorporated (have an “Inc.” after their name) then you don’t have to send them a 1099.

So, how do you know if your vendor is incorporated or not?  You have to send them a W-9, which is a form they fill out and let you know what their tax filing status is.  If you haven’t sent out your W-9’s, now’s the time to do it.   You want to give them some time to get the forms back to you.

There are two components to this:
1/ send 1099’s to each of your vendors that meet the criteria.  1099’s were due to your vendors on 1/31/12.  Don’t panic if you haven’t done it yet.
2/ send the transmittal form 1096 to the IRS by 2/29/12.  Now this is a critical date.  You don’t want to be missing this one.

The good news is that you can still meet your obligations to “render unto Caesar what is Caesar’s.”  Need help with this or want more information?  Just post a comment below.  I’d love to hear from you.