1099 Preparation
Year-end 1099 preparation and filing for contractors and vendors. We handle the forms so you stay compliant without chasing paperwork in January.
What This Is
If your business paid contractors, freelancers, or certain vendors $600 or more during the year, the IRS requires you to report those payments on a 1099 form. The most common version is the 1099-NEC, which covers nonemployee compensation. There are other types depending on the nature of the payment, but for most small businesses in the Bronx and across NYC, the 1099-NEC is the one that matters.
We prepare and file these forms on your behalf. That means gathering the necessary information, verifying it against what you have on file, preparing each form accurately, and submitting them to both the IRS and the recipients by the filing deadline. You do not have to wrestle with IRS portals or figure out which box to fill in.
What We Need From You
What We Need From You
A list of the contractors and vendors you paid during the year, along with how much each one received. Ideally you collected a W-9 from each person before you paid them. If you did not, we can help you track those down, though it is always easier when they are gathered upfront.
The Deadline
The Deadline
1099-NEC forms are due to both the IRS and the recipient by January 31. That deadline does not move. Missing it can result in penalties that increase the longer you wait. We recommend starting the process in early January so there is enough time to collect any missing W-9s and verify payment totals.
Why This Matters
A lot of business owners do not realize they have a 1099 filing obligation until tax season hits. They paid a subcontractor in cash or by check throughout the year, never collected a W-9, and now January is here. The contractor is hard to reach. The records are incomplete. The deadline is in two weeks.
This is especially common in industries where subcontractors are part of daily operations. Cleaning companies, restaurants using freelance delivery drivers, trucking operators working with independent owner-operators. If you are paying people who are not on your payroll, this filing requirement applies to you.
IRS Penalties
IRS Penalties
The penalties for late or incorrect 1099 filings are real. Filing within 30 days of the deadline carries a penalty per form. File after August 1 and the penalty per form increases significantly. If the IRS determines you intentionally disregarded the requirement, the fines are even steeper. For a business that uses ten or fifteen contractors, this adds up fast.
The W-9 Problem
The W-9 Problem
The biggest headache with 1099s is not the filing itself. It is chasing down W-9 forms from people who already finished the job and moved on. Every contractor you pay should provide a W-9 before you issue the first payment. If that did not happen, January becomes a scramble. We can help you put a process in place so next year is easier.
What Changes
You hand us the information and we take care of the rest. The forms are prepared correctly, filed with the IRS on time, and delivered to your contractors before the deadline. You are not logging into government websites trying to figure out e-filing procedures at the last minute.
Beyond just getting the forms done, this puts your business on the right side of compliance. Your records are clean. Your contractors have what they need to file their own taxes. And if you are also working with us on bookkeeping, the payment data is already organized, which makes the whole process even smoother.
Clean Contractor Records
Clean Contractor Records
Once your 1099s are filed, you have a clear record of every contractor payment for the year. This is useful if the IRS ever asks questions, and it gives your tax preparer exactly what they need when they work on your business return. No guessing, no digging through bank statements.
A Better Process Going Forward
A Better Process Going Forward
If this is the first year you are getting your 1099s handled properly, we will help you set up a simple system for collecting W-9s and tracking contractor payments throughout the year. That way, when next January comes around, the work is mostly done before it even starts.
Your NYC Small Business Bookkeeper
The Next Step:
A Short Conversation
Tell us about your business and what you need help with. We'll ask a few questions, walk you through how we work, and give you an exact quote.
