1099 Reporting for Independent Contractors (corporation, payments, requirements, 1099 form)

[jwt8070]

Hi,

My business uses several independent contractors (IC). The amount of payment to each IC is fairly small, less than $600 per year, but the combined payments to all ICs is greater than $600 per year. Do I need to report payment to each IC to IRS in a 1099 form at the end of year?

Thanks.

[Bulldogdad]

Short answer. Yes.

[BE in HHI]

GENERALLY, you issue a 1099 when the total payments to a single contractor exceed $600. Additionally, you currently do not issue 1099s to corporations unless the corporation is a law firm (and a few other exceptions). However, the reporting requirements are about to change such that businesses will need to issue 1099s to all vendors.