January is right around the corner and you know what that means? It’s time to get the 1099-NECs done. These need to be completed every January and filed to report how much you paid a subcontractor or vendor in the previous calendar year. The IRS requires you to have your 1099-NECs processed for any nonemployee that you paid $600 or more to throughout the year. There are certain exemptions made by the IRS, such as, if the vendor is listed as a corporation. In which case, a 1099-NEC is not necessary and does not need to be processed. As much as nobody likes receiving one OR filling one out, they are required in most cases and must be done!
Where to get a 1099-NEC form…
There are many different options on how to obtain a 1099-NEC form.
- Find them at your local supply store
- Request them from the IRS
- Local Library
- City Office
- Accounting/Construction Software
- Various e-filing websites
Even though you can obtain a paper form from various locations, the best option would be to use an accounting software such as QuickBooks, or other official e-filing 1099 websites. There are many applications out there that can be searched through google that will allow you to file them electronically. With all of the tools and resources out there today, there is no reason to sit and fill out forms by hand.
The most efficient and less straining way to fill out all those 1099-NEC forms is to do them online. Who wants writer’s cramp, right? Not to mention, filling out all forms by hand can mistakenly lead to human error. Software systems are built to eliminate human error by catching certain mistakes before they are processed. Once you fill everything out by hand, you still need to send in the forms by mail. Sending these forms through the mail isn’t the most reliable method either and creates a cause for concern when trying to make sure the forms were received. Unfortunately, post-Covid, mail has become delayed more often and this can cause you to miss a potential deadline.
What you SHOULD be doing is filing all of your 1099-NECs electronically, not by hand. It saves time, potential error, and even allows you to track the status of your filing in real time so you can know if and when it was received and approved, making it a much more reliable process. There are a significant amount of tools and programs out there to guide you through the process and save you time and stress. Keep your construction business streamlined and always choose to work smarter, not harder!
