Form 1099 and Health Insurance Reporting for Small Businesses
Form 1099 Reporting
Form 1099 reporting requirements can be extremely costly for small businesses due to the complexity of the rules and potential fines assessed for compliance failures. The IRS requires businesses to submit 1099s to other entities and the IRS when certain types of payments are made during the year. Of the 17 types of form 1099, the most relevant form (and the form we will be covering in more detail below) is the 1099-MISC.
What types of payments require a 1099-MISC to be filed?
Form 1099-MISC must be filed when $600 or more in total payments have been paid to certain entities or individuals for rents or services related to your trade or business during a calendar year. Payments for products or goods purchased do not require a 1099-MISC to be filed, and payments made to an individual not in the course of your trade or business do not require filing. Examples of services requiring