How do you track payments to 1099 Contractors?
In general you are required to issue a 1099-Misc to any contractor you paid more than $600. Now, you can only report on Form 1099-MISC payments made in the course of your trade or business. Personal payments are not reportable.
You are engaged in a trade or business if you operate for gain or profit. Side hustles count. Non-profits too.
However, with lots of freelancers requesting payment across a myriad of payment platforms, like Venmo, Paypal, etc, it’s tough to keep track sometimes.
So, I’d like to know how YOU track these payments?
***Disclaimer** This response was prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. Attorney advertising. If you have any more questions, reach out to the team at ScotchPalm.com—fearlessly connecting the dots for entrepreneurs.