Ask Experts Questions for FREE Help !
Ask
    cardiocentrix's Avatar
    cardiocentrix Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Apr 24, 2009, 05:55 PM
    Information required on file for 1099 worker
    Hi all! :) This is my first question to this site. Hopeful for direction. I own a business that has decided to initiate a referral program. This program would allow anyone who refers us customers to receive a percentage of the proceeds. My question(s) are:
    1. What information do I need to keep on file for them? i.e. social, 1099, etc. and at what point, (up front? After an earned amount? etc.)
    1. Is there a dollar amount threshold in which there is no reporting?

    I guess that I am in hopes that there is a magic number in which I can freely reward folks for sending me business! :D

    Any help would be greatly appreciated!
    Thank you!
    Lorna
    Booky's Avatar
    Booky Posts: 24, Reputation: 1
    New Member
    		  
    #2

    Apr 25, 2009, 02:18 PM

    The IRS requires that you use a Form 1099-MISC to report payments made for non-employee compensation that is $600 or more. If you are making payments to non-employees, then you would use that form. If you are making payments for referrals to employees, then it is reported as additional wages or commissions.

    It is necessary to have a full name, address and social security number for all persons receiving Form 1099-MISC. You should give each person receiving payment a Form W-9 that requests the tax information listed above. You can download a PDF copy of Form W-9 from the IRS website: Internal Revenue Service. A good policy is to not pay someone until you have that information. It is more difficult to find the information after payment is made.
    cardiocentrix's Avatar
    cardiocentrix Posts: 2, Reputation: 1
    New Member
    		  
    #3

    Apr 25, 2009, 05:16 PM
    :) Thanks a million!
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

1099 Deductions for Construction Worker [ 2 Answers ]

As a Construction worker I got an 1099Misc. For about 10,000. I am married with one child. What can I use as deductions for my taxes? How much will I need to pay with out any deductions? Thanks

H1B Visa, Non Immigrant Worker W-2 or 1099? [ 1 Answers ]

Hello, I´m a Non Immigrant Worker using a H1B visa to work for my sponsor employer in USA, I started Working March 2008 and I´m preparing my tax return forms for 2008, when I asked my employer for the W-2 Form I told me he is going to give me a 1099-MISC Form to declare my income, I would like...

Required information regarding SSN [ 1 Answers ]

Recently my visa status is changed from L1 to H1B. Will I have to change my SSN also?

Can a worker on E3 visa be a contractor using 1099? [ 1 Answers ]

I have an E3 visa and on a W2 form. Am I eligible to switch to a 1099 form and still work for the same company?

Information required [ 4 Answers ]

My question is " How to know if a woman is aroused?" Or is she just faking it??

View more questions Search