Businesses should note unique state ­deadlines for 1099-MISC reporting

The rapidly expanding "gig" economy means everyone from Uber drivers to web developers will be looking for their 1099-MISC forms this winter. As businesses prepare for another grueling filing season, many companies will need to file 1099-MISCs with the IRS and separately at the state level, with deadlines varying across the nation.

Businesses paying $600 or more per year to an independent contractor are required by the federal government to send 1099-MISC forms to workers and the IRS no later than January 31, 2019.

Greatland Corporation, one of the country's leading providers for businesses of W-2, 1099, and 1095 forms and e-filing services, is reminding businesses to be aware of the unique requirements and differing deadlines of each state as well.

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What is a 1099-MISC?

A 1099-MISC is the form businesses use to report miscellaneous income, such as income earned as a contract or freelance worker, as well as fees, royalties, commissions and rental income. If you are an employer who uses contractors or freelance workers whom you paid at least $600 during the year, you must provide them and the IRS with a 1099-MISC form to report this income. Many businesses mistakenly assume that filing 1099-MISC forms with the federal government is enough.

"More than 30 states require businesses to file Form 1099-MISC some with deadlines that differ from those of the IRS," said Janice Krueger, a subject matter expert at Greatland Corporation. "Most states only have one deadline for 1099-MISC reporting, but there are exceptions like Alabama where the deadline varies depending upon whether state tax was withheld or not."

It is important to note fines for 1099-MISC delays can add up quickly. They start at $50 per Form 1099-MISC if late 30 days or less, increasing to $100 per form if late more than 30 days. The penalty increases to $270 per form filed after August 1.

Businesses should take special note: they will not be able to acquire a 30-day extension to file 1099's. Extensions will only be granted in cases of catastrophic event or serious illness. To apply for such an extension, businesses must file an IRS Form 8809.

Published: Fri, Nov 16, 2018

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