Streamline Your Billing with Our Contract Labor Invoice Template for R&D

Contract labor invoice template for R&D

Hey guys, it's Ginny Silver. And today I'm going to talk to those of you who are small business owners who had independent contractors. And now you must send them a business. Or, if you are self employed and you hire out an independent independent contractor in order to perform services for you or your business, you're required to send them out a 1099 if you paid them the amount of $600 or more during that taxable year. Now please note, I am not a CPA nor am I a tax preparer, so this video does not substitute contacting a tax professional. This is merely compounding resources for you as small business owners because this information can be quite confusing and many don't know where to go. Now, if you paid any individuals as independent contractors, meaning that you did not hire them on as an employee, but they provided their services for your business and you pay them directly in the amount of $600 or more, then you are required to file a 1099 NEC, which stands for Non Employment Compensation. This form must be delivered to that independent contractor no later than January 31 of the following year. That means that if you had independent contractors working under your business in 2021, that you must deliver them their 1099 NEC no later than January 31, 2022. Previously, this would have been reported on a 1099 Miscellaneous, but as of 2020, this has now changed to a 1099 NEC. Now, self employed individuals are required to report any income over a net income of $400 on their income taxes, regardless of whether or not they receive their 1099. Businesses and self employed individuals are required to issue a 1099 to an independent contractor if they paid that contractor $600 or more during that tax year. So, as a small business, how can you generate these 1099 NEC forms that you must send to your independent contractors? There are two different ways that I generate 1099 for my own independent contractors. Number one is through my payroll management software. I utilize a software called Gusto which allows me to hire and pay employees and independent contractors. This software in this company is kind of a one stop shop for having independent contractors and employees makes it extremely easy to hire, pay taxes, and stay compliant with your state's regulations. Now, if I choose to utilize Gusto for this service, they will automatically generate file as well as mail out a paper copy of my 1099 to my independent contractors as well as to the IRS. If I am not utilizing Gusto and I am paying independent contractors without use of my payroll software, then I use a website called Tax1099.Com. Tax1099. Dot.com allows me to instantly generate 1099 forms, make them available for digital access as well as mail out a paper copy. They also will then submit it to the IRS and if required to submit to your state separately, you can do that as well. Okay, you guys. I hope that was helpful for those of you that need to figure out how to generate 1099 before the end of the month.