Demystifying 1099s: Essential Tips for Year-End Preparations

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Hi folks, it's Tanya Schulte with The Profit Constructors here to talk to you
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again about 1099s. It's that time of year.
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Year-end is approaching and everyone has these types of questions on their mind.
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One of the most common questions that our team hears is, how should I know when
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I'm supposed to collect a W-9?
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So let's clear up a few things about that.
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First of all, you definitely want to be collecting W-9s from your subcontractors
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and your independent contractors, think janitors or landscapers,
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any business that you pay $600 or more to in a year for services.
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Now, no W-9 is needed for a corporation providing services unless it's an attorney
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or a medical provider. So do keep those exemptions in mind.
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If you're only paying for materials, no W-9 is required, but if there's labor,
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make sure you get that W9.
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And if there's ever a gray area and you're unsure, play it safe.
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Nothing says you can't collect a W9. So go ahead and get that W9 and then come
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chat with our team and we'll make sure to help you figure out what to do with it.
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