- January 10, 2017
- Posted by: admin
- Category: Accounting Advice
As we approach tax season, there are requirements that need to be met by businesses in order to be in full compliance with the law. The
requirement for subcontractors is that they are sent a 1099 that summarizes the total amount of money paid out to them over the course of
the year. Below is a list of requirements that would require a 1099 be sent to a subcontractor:
1 Recipient is an LLC, sole-proprietor, or partnership (Corporations are not required to receive these due to their stricter tax rules) AND,
2 $600 or more paid out over the year
If you have subcontractors that check the boxes to the requirements above, please have them fill out a W-9.
1099s: Important Upcoming Dates
• January 31 of the following year when you’re reporting non-employee compensation payments in Box 7;
• February 28 if filing by paper when you’re NOT reporting non-employee compensation in Box 7; or
• March 31 if filing electronically when you’re NOT reporting non-employee compensation in Box 7.
1099 Filing Penalties
| Time returns filed/furnished | Due 01-01-2011 thru 12-31-2015 |
Due 01-01-16 thru 12-31-2016 (inflation adjusted) |
Due 01-01-17 thru 12-31-2017 (inflation adjusted) |
Due 01-01-18 thru 12-31-2018 (inflation adjusted) |
| Not more than 30 days late (by March 30 if the due date is February 28) |
$30 per return/ $250,000 maximum |
$50 per return/ $529,500 maximum |
$50 per return/ $532,000 maximum |
$50 per return/ $536,000 maximum |
| 31 days late – August 1 | $60 per return/ $500,000 maximum |
$100 per return/ $1,589,000 maximum |
$100 per return/ $1,596,500 maximum |
$100 per return/ $1,609,000 maximum |
| After August 1 or Not At All | $100 per return/ $1,500,000 maximum |
$260 per return/ $3,178,500* maximum |
$260 per return/ $3,193,000 maximum |
$260 per return/ $3,218,500 maximum |
| Intentional Disregard | $250 per return/ No limitation |
$520 per return/ No limitation |
$530 per return/ No limitation |
$530 per return/ No limitation |
| Time returns filed/furnished | Due 01-01-2011 thru 12-31-2015 |
Due 01-01-16 thru 12-31-2016 (inflation adjusted) |
Due 01-01-17 thru 12-31-2017 (inflation adjusted) |
Due 01-01-18 thru 12-31-2018 (inflation adjusted) |
| Not more than 30 days late (by March 30 if the due date is February 28) |
$30 per return/ $75,000 maximum |
$50 per return/ $185,000 maximum |
$50 per return/ $186,000 maximum |
$50 per return/ $187,500 maximum |
| 31 days late – August 1 | $60 per return/ $200,000 maximum |
$100 per return/ $529,500 maximum |
$100 per return/ $532,000 maximum |
$100 per return/ $536,000 maximum |
| After August 1 or Not At All | $100 per return/ $500,000 maximum |
$260* per return/ $1,059,500 maximum |
$260 per return/ $1,064,000 maximum |
$260 per return/ $1,072,500 maximum |
| Intentional Disregard | $250 per return/ No limitation |
$520 per return/ No limitation |
$530 per return/ No limitation |
$530 per return/ No limitation |
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