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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?
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.
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