Theresa Arndt, CPA

Another year has flown by and is almost in the books. With that means the Form 1099-NEC and 1099-MISC filing deadline is just around the corner ( January 31 for most).  Here are some key facts to remember about 1099's as we approach the new year. 1)  Bank account activity needs to be entered and reconciled through December 31. So if you’re not caught up through November (or September if a quarterly A&Co client), you’ll want to get on that ASAP so that there’s only one month/quarter to do in January. NOTE: Checks dated in 2023 that don’t clear until 2024 still must be counted towards 2023! They’ll simply appear as an outstanding item on the bank reconciliation. 2)  Anyone paid $600 or more  for services OR rents OR potentially a combination of services and materials by cash, check, or bank wire/ACH/transfer ( cumulative in the calendar year) require a 1099-MISC to be filed, unless the Form W-9 indicates otherwise…a little more on that later. Payme...

Chances are as a small business owner you’ve heard of Form W-9...and if not, there’s good news – I’m about to tell you all about it 😉 . Maybe you’ve been requested to provide it to a customer, or maybe I’ve asked you to get one for a contractor you’ve paid.   But do you understand why you’re requesting this form (or why it’s being requested of you), and what its purpose is? The Form W-9 essentially is an informational form that helps with Form 1099-MISC processing (that’s our primary focus here at least). The W-9 lists the person’s/company’s name, entity type, address, taxpayer identification number (either SSN or EIN), and signature certification. This gives all of the necessary information needed to file a Form 1099-MISC, other than the actual dollar amount paid to the person/company during the year (which should be available in your accounting records). It also certifies that the person/business is not subject to backup withholding , which essentially means that you as ...