Our 1099 Process- What to Expect

Reminder

1099 form processing is not included as part of monthly bookkeeping service.  We are happy to provide this service for you upon request.

Why aren’t 1099 forms included with monthly bookkeeping?

Over the years, we have learned that our client’s needs for 1099 service change from year to year.  Some clients pay contractors through a service that takes care of 1099 compliance, others have their tax preparer complete the forms, and yet others feel comfortable doing it themselves.  This method ensures that you only pay for this service if you request it.

What to Expect:

Step 1- Check the client portal and reply when we ask you about 1099 Form Preparation Service

We send out an email to all of our monthly clients in December to inform us of their plans for 1099 via the client portal. This is where you let us know if you need us to provide this service.  Responding by the deadline in the email, ensures you pay the lowest rate for this service.

If we don’t hear from you by the end of December, we will assume that you don’t need us to provide this service.

Step 2- Review and Approve the Draft List we provide

For clients that requested the service, we send a draft list of 1099 recipients around mid-January for review and approval once we have reconciled the December transactions.

This is the time to provide any W-9 forms that you hadn’t previously provided, check with your vendors to make sure that their address hasn’t changed, and inform us of anything that doesn’t look right in the list.

Step 3- Accept the Proposal and Sign the Agreement

Once you have approved the draft list, we will provide a customized proposal with a fixed rate for the number of forms that you need.  We will provide a date that this needs to be completed by in order to ensure that we meet the IRS deadline.

Step 4- We e-file the forms on your behalf

Once you approve the proposal and sign the agreement, we will begin working on your forms, assuming that we have all W-9 forms already on file.

Step 5- Download copies for your records

Once your forms are ready, we will inform you via the client portal and provide PDF copies to download for your records.

If you did not choose to have us mail the forms on your behalf and did not provide vendor e-mail addresses for e-delivery, you will be responsible to distribute the forms to your vendors.