Everything you need to know about Form 1099-MISC

This feature is currently only available for Payroll by Wave in the US.

Form 1099-MISC is an IRS form that summarizes all compensation your business has paid to a non-employee worker, or contractor. Independent contractors use these forms to file their taxes.

What do I need to do?

You must send Form 1099-MISC to any contractors you have paid more than $600 to in a calendar year. This is not limited to individual contractors: the requirement extends to partnerships and LLCs. Corporations are excluded.

What’s the deadline?

The deadline to send 1099 forms to your contractors is January 31. This is the same date as the deadline for W2 forms for your regular employees.

The penalty for missing this deadline varies, but can range from $30 to $100 per form, to a maximum of $500,000 per year. If you neglect to send any 1099 forms, fees can go as high as $250 per form.

How do I get 1099 forms from Wave?

Wave will generate a 1099-MISC Form for every contractor you’ve marked as a 1099 Contractor and paid more than $600 in a calendar year. PDF 1099s will be available for you to send to your contractors and file your taxes.

If your business is located in a state where Wave provides tax service and you have opted in to these services, Wave will e-file 1099s on your behalf. You will still need to provide the form to your contractors.