As your business grows, it might be time to start hiring help. You can do that by hiring employees or working with subcontractors. If you hire an employee, you have to deal with salaries, payroll taxes, and many other legal and HR related issues. If you hire a subcontractor, things are a bit simplified - as long as you follow the right guidelines. Since many small business owners prefer to … [Read more...]
Update to 1099 Reporting Changes
UPDATE: New 1099 Reporting Requirements Repealed! The IRS has issued a proposed regulation to help deal with the flood of paperwork associated with the new 1099 reporting requirements that are set to take effect in 2012. Under the proposed regulation, any business purchases made with a credit or debit card will be exempt from the new reporting requirement because those purchases are already … [Read more...]
1099 Forms Due Soon!
If you paid any unincorporated service providers $600 or more during 2009, it's almost time to send your 1099s out. The due date this year is February 1, 2010. So, who might need a 1099 from you? You send 1099s to service providers, but not to vendors who sold you merchandise. Also, if your service provider operates as a corporation, you don't need to send them a 1099. Who's left? Any … [Read more...]