Prepare a 1099 for a Contract Worker
When you pay at least $600 in compensation for work or services done by a person who is not an employee of your trade or business, you probably need to prepare a 1099-MISC.
Instructions
Minnesota Tax Filing
1 - Determine you paid $600 or more to a contract worker during the tax year. Include only payments made in the course of your trade or business; personal payments are not included. Include payments made directly to the worker for parts and materials.
2 - Obtain form 1099-MISC. It is titled "Miscellaneous Income."
3 - Write your business Employer Identification Number (EIN) or your Social Security number as the payer's federal identification number.
4- Write the worker's Social Security number as the recipient's identification number.
Kentucky State Tax Extension
5 - Write the amount of money you paid to the independent contract worker in box 7, titled "Non-employee compensation."
6 - Write any federal or state income tax withholding you have done for the worker in box 4 or 11. It is unlikely you have withheld income tax for the worker.
Kentucky Tax Filing
7 - Fill in your name, address and phone number or that of your business.
8 - Fill in the worker's name and address.
9 - Write your state in box 12. Two-letter state abbreviations are preferred.
10 - Give or mail copy B and copy 2 of the 1099-MISC to the worker no later than January 31 of the year following the one during which the payments were made to the worker.
11 - Send copy 1 to the tax revenue department of the worker's home state by February 28. This is not necessary if that state has no state income tax.
Income Tax Preparation
12 - Send copy A to the IRS along with form 1096 by February 28. You have until March 31 to file copy A and Form 1096 if you file them electronically.
13 - Retain copy C in your records.
When you pay at least $600 in compensation for work or services done by a person who is not an employee of your trade or business, you probably need to prepare a 1099-MISC.
Instructions
Minnesota Tax Filing
1 - Determine you paid $600 or more to a contract worker during the tax year. Include only payments made in the course of your trade or business; personal payments are not included. Include payments made directly to the worker for parts and materials.
2 - Obtain form 1099-MISC. It is titled "Miscellaneous Income."
3 - Write your business Employer Identification Number (EIN) or your Social Security number as the payer's federal identification number.
4- Write the worker's Social Security number as the recipient's identification number.
Kentucky State Tax Extension
5 - Write the amount of money you paid to the independent contract worker in box 7, titled "Non-employee compensation."
6 - Write any federal or state income tax withholding you have done for the worker in box 4 or 11. It is unlikely you have withheld income tax for the worker.
Kentucky Tax Filing
7 - Fill in your name, address and phone number or that of your business.
8 - Fill in the worker's name and address.
9 - Write your state in box 12. Two-letter state abbreviations are preferred.
10 - Give or mail copy B and copy 2 of the 1099-MISC to the worker no later than January 31 of the year following the one during which the payments were made to the worker.
11 - Send copy 1 to the tax revenue department of the worker's home state by February 28. This is not necessary if that state has no state income tax.
Income Tax Preparation
12 - Send copy A to the IRS along with form 1096 by February 28. You have until March 31 to file copy A and Form 1096 if you file them electronically.
13 - Retain copy C in your records.