1099 Preparation
Preparation and filing of 1099 forms for your contractors and vendors, accurate and on deadline. Common for home care agencies and practices that work with independent contractors, where the January filing deadline arrives faster than expected.
What This Is
If your business paid $600 or more to a contractor or vendor during the year, you are required to file a 1099 form reporting that payment to the IRS. The form also goes to the contractor so they can report the income on their own return. It sounds simple, but tracking who qualifies, gathering the right information, and filing accurately takes real time.
This comes up constantly for medical business owners. Home care agencies paying independent caregivers. Therapy practices contracting with PRN therapists. Med spas paying aestheticians or nurse injectors as contractors. If you work with people outside your payroll, you likely have 1099 obligations every January.
The Work
The Work
Hunter Green CPA gathers your contractor payment records, verifies W-9 information for each recipient, prepares the 1099-NEC forms, files them with the IRS, and sends copies to your contractors. Pricing starts at $150 and includes up to five forms, with additional forms at $15 each.
The Timing
The Timing
1099 forms are due to recipients by January 31, and filings with the IRS are due the same day. That deadline does not move. The work needs to happen in January, which means having your contractor payment data organized before the new year helps everything go smoothly.
Why This Matters
The IRS imposes penalties for late or missing 1099 filings, and those penalties increase the longer you wait. File within 30 days of the deadline and the penalty is $60 per form. After 30 days but before August 1, it rises to $130 per form. After August 1 or if you never file, it jumps to $330 per form. For a home care agency with 20 contractors, a missed deadline can add up fast.
The other challenge is simply staying organized. Most owners do not track contractor payments in a way that makes 1099 preparation easy. When January arrives, they find themselves searching through bank statements and trying to remember who got paid what. This creates errors, and errors create problems for you and for the contractors who depend on accurate forms.
Penalty Exposure
Penalty Exposure
Missing a few forms might seem minor, but the penalties are per form. Ten missed 1099s filed after August can mean $3,300 in penalties. The IRS matches 1099 filings against contractor tax returns, so missing forms often get noticed. It is an avoidable expense.
Contractor Expectations
Contractor Expectations
Your contractors need their 1099s to file their own taxes. If your forms are late or incorrect, they are stuck waiting or dealing with the mismatch on their return. This affects your working relationships with people you may want to keep working with.
What Changes
With 1099 preparation handled, you stop worrying about the January deadline. Hunter Green CPA tracks what is needed, prepares the forms accurately, and files them on time. You do not have to scramble through records in the middle of running your business, and your contractors receive correct forms when they need them.
This gets even easier when combined with Full-Service Bookkeeping. If your books are current all year, the contractor payments are already categorized and easy to pull. And if you need help setting up your payroll system to properly separate employee wages from contractor payments, that foundation makes 1099 season straightforward.
No Missed Deadlines
No Missed Deadlines
Forms are prepared and filed before the January 31 deadline every year. No late penalties, no rush, no stress. You can focus on your patients and clients in January instead of chasing down contractor information.
Accurate Records
Accurate Records
Each 1099 is verified before filing. The amounts match your records, the contractor information is correct, and both you and the recipient have documentation that holds up. If you have questions about 1099 requirements for your business, reach out for a consultation.
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Tell us about your business and what you need help with. We'll ask a few questions, explain how we can help, and tell you exactly what it will cost.