Independent Contractors Archives

Independent Contractors Archives - Patriot Software Tue, 29 Oct 2024 12:42:59 +0000 en-US hourly 1 https://wordpress.org/?v=6.6.2 https://www.patriotsoftware.com/wp-content/uploads/2020/01/cropped-site-favicon-32x32.png Independent Contractors Archives - Patriot Software 32 32 How to Issue a Corrected 1099 (MISC and NEC) https://www.patriotsoftware.com/blog/accounting/how-do-i-issue-a-corrected-form-1099/ Wed, 14 Aug 2024 14:58:00 +0000 https://pslohio.wpengine.com/uncategorized/how-do-i-issue-a-corrected-form-1099/

Two people discussing how to issue a corrected 1099.

Do you file Forms 1099-MISC or 1099-NEC? If so, you might mix up the forms, enter incorrect information, or use a form from the wrong tax year. If you make a mistake on either form, you may need to issue a corrected 1099. “Mistake” is the last word you want to hear in business. But, […]

]]> W-2 Employee vs. 1099 Contractor: Which Is Better for Your Small Business? https://www.patriotsoftware.com/blog/payroll/w2-employee-vs-1099-contractor/ Thu, 07 Mar 2024 19:38:24 +0000 https://www.patriotsoftware.com/?p=67324

Two co-workers discussing the difference between W-2 employee vs. 1099 contractor.

You’re ready for some help around your business. Should you hire a W-2 employee or a 1099 contractor? The choice might not be yours. There are key differences between a W-2 employee vs. a 1099 contractor that you must understand to stay legally compliant. Learn more about W-2 employees and 1099 contractors, the difference between […]

]]> “SOS! Do I Need to Prepare a 1099 for Credit Card Payments I Make to Contractors?” https://www.patriotsoftware.com/blog/accounting/1099-for-credit-card-payment/ Wed, 07 Feb 2024 14:09:00 +0000 https://www.patriotsoftware.com/?p=52882

Woman on the phone looking at a document.

Paying a contractor to perform work for your business comes with a little disclaimer: reporting said payments on Form 1099-NEC. But what if you pay your contractor using a credit card? Do you have to prepare a 1099 for credit card payments? If you’re not sure what your responsibilities are for making electronic payments to […]

]]> Independent Contractor vs. Employee Classification https://www.patriotsoftware.com/blog/payroll/classifying-independent-contractors-vs-employees-infographic/ Mon, 15 Jan 2024 22:24:00 +0000 https://pslohio.wpengine.com/uncategorized/classifying-independent-contractors-vs-employees-infographic/

Business owner working with independent contractor.

Here’s a payroll question: How do you differentiate between employees and independent contractors? It all depends on the relationship between the potential employer and the worker, as outlined by the 2024 DOL contractor rule. It’s important to properly classify workers, but it can be tricky. Here’s an example: Joe runs his own construction business. Joe has […]

]]> New DOL Contractor Rule 2024: What to Know for Worker Classification https://www.patriotsoftware.com/blog/payroll/new-dol-rule-contractors-2024/ Mon, 15 Jan 2024 20:02:18 +0000 https://www.patriotsoftware.com/?p=66251

Not all workers are employees. Some might be independent contractors. Figuring out if your worker is an employee or independent contractor under the Department of Labor (DOL) guidelines can be difficult. The new DOL contractor rule 2024 aims to eliminate confusion. It provides detailed guidance on worker status. As a result, the number of workers […]

]]> IRIS 1099: What to Know About the Information Returns Intake System https://www.patriotsoftware.com/blog/accounting/iris-information-returns-intake-system/ Tue, 07 Nov 2023 21:06:58 +0000 https://www.patriotsoftware.com/?p=65228

Do you need to file Form 1099-NEC, Nonemployee Compensation, Form 1099-MISC, Miscellaneous Information, or another 1099 type? You can use the IRS’s Information Returns Intake System (IRIS) to e-file 1099s. Here’s what to know about IRIS 1099 filing. What is IRIS 1099? The Information Returns Intake System, IRIS, is a free platform that businesses can […]

]]> The Ins and Outs of E-Filing 1099s With the IRS https://www.patriotsoftware.com/blog/accounting/e-filing-1099s-irs/ Wed, 01 Nov 2023 22:00:00 +0000 https://www.patriotsoftware.com/?p=52949

Man holding up a piece of paper while using a desktop computer.

When you own a business, you may need to hire an extra helping hand, like a vendor or contractor, to get a job done. And when you pay an independent contractor or vendor, you may be responsible (depending on how much you paid them during the year) for distributing and filing either Form 1099-NEC or […]

]]> How to Convert a Worker from Contractor to Employee https://www.patriotsoftware.com/blog/payroll/convert-contractor-to-employee/ Fri, 16 Dec 2022 15:38:24 +0000 https://pslohio.wpengine.com/uncategorized/convert-contractor-to-employee/

At some point, you might need to convert an independent contractor to an employee. You might have worked with a contractor several times, but now you want to hire them as an employee. For example, you might have used an independent contractor to periodically assist with your business’s marketing, but now you want to hire […]

]]> Hiring a 1099 Subcontractor: Do Your Homework https://www.patriotsoftware.com/blog/accounting/do-your-homework-when-hiring-a-1099-subcontractor/ Wed, 09 Nov 2022 15:17:55 +0000 https://pslohio.wpengine.com/uncategorized/do-your-homework-when-hiring-a-1099-subcontractor/

1099 subcontractor shaking someone's hand.

As a small business owner, you might have considered hiring a 1099 subcontractor. In some ways, a subcontractor can give you more flexibility than an employee. Subcontractors are responsible for their own permits and payroll taxes. But, you must be careful when making a 1099 contractor agreement. You do not want to misclassify an employee […]

]]> What Is Nonemployee Compensation? https://www.patriotsoftware.com/blog/accounting/what-is-non-employee-compensation/ Mon, 07 Nov 2022 19:27:19 +0000 https://pslohio.wpengine.com/uncategorized/what-is-non-employee-compensation/

Smiling construction worker entering credit card information into phone.

As a small business owner, you might hire independent contractors to address business-related needs. When you pay an independent contractor, they receive nonemployee compensation. What is nonemployee compensation? What is nonemployee compensation? Nonemployee compensation is the money you pay to an independent contractor who performs work for you. Nonemployee compensation includes fees, commissions, prizes, and […]

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