What is a 1099-MISC?

Typically, 1099-MISC forms are used to report payments to vendors or affiliates who earn $600 or more during the tax year. This is used to report Nonemployee Compensation, which can be for any number of payments. A 1099-MISC can also be used to report many other types of payments including rents and royalties, as well as other less common business expenses.

Who needs to file a 1099-MISC?

If you have made any payments to a vendor that total $600 or more during the course of the year, that was made in the course of your trade or business you must file a 1099-MISC.

Some types of payments have lower thresholds than $600. For example, any royalty payments totaling over $10 for the year must be reported.

All individuals, sole proprietors, and LLCs must be issued a 1099-MISC. Corporations generally do not need to be issued a 1099-MISC except for under certain special circumstances.

What information do I need to file a 1099-MISC?

If using our WP1099 plugin, we will gather as much of the information as we can for you to file 1099-MISC forms for your marketplace vendors, or affiliates. We look at all payments made during the year using one of the many compatible affiliate or vendor plugins. If payments to any individual are over the minimum reporting threshold, we’ll include them in the report that we generate.

If you have made payments to anyone during the year for services outside of your marketplace vendors or affiliates, our export file has a section for every type of payment that can be edited by you before submitting the 1099-MISC forms to the IRS. You can make as many changes as needed so that all the necessary 1099-MISC forms are filed at the end of the year.

What information do I need to collect?

WP1099 does not collect sensitive information like social security numbers, or employer identification numbers. You can collect this information from your vendors or affiliates by sending an IRS W9 form to each vendor. It is highly recommended that this information is stored in a safe place so that unauthorized individuals do not get access to it.