Year End Checklist For Contractors
The end of the year always comes as a surprise to me. It shouldn’t, but it does. I think that with Christmas and family and Santa and programs and projects, and, and, and …. that my head is full and by the time that last week of December rolls around, I’m shocked.
If you are anything like me, you want to be prepared and also save yourself a bit of work in January when it is already hectic with filings and year-end reconciliations. Because of this, we’re sharing our checklist of the items we review/consider/discuss both before and after year-end. Please feel free to customize this list to your liking as you may have additional or different items in your business. Click here to purchase the checklist.
We also get quite a few questions on 1099 filings. To help you prepare for 1099s, here are a few helpful tips and links:
1. Review your 1099 filings early so that you can gather any missing information.
2. Some software allows for electronic filing if you have the subcontractor’s email.
3. 1099’s are issued to subcontractors that were paid over $600 and is/are a:
a. Sole proprietors/Independent contractors
c. Attorney fees
d. LLCs or partnerships that are taxed as sole proprietors
i. Consult the W-9 the subcontractor filled out
4. For more resources, check out https://www.irs.gov/forms-pubs/about-form-1099-misc-miscellaneous-income
On another note, electronic W-2/3 and some states are due on 1/29 this year. Aatrix has a nice summary here: https://www.aatrix.com/efile/w2/w2-efile-due-dates/