For years, businesses reported payments to contractors in box 7 of the 1099-MISC.  Starting in 2021, this is changing; contract-labor payments will now go on the Form  1099-NEC. We will discuss this new form as well as changes to the 1099-MISC in light of this new form being rolled out. Other topics covered include penalties and how to get out of penalties; using the Form W-9 for compliance; how to tell the difference between a contractor and an employee; how to deal with reimbursements to contractors.

This webinar will cover changes in the 1099 world for 2021. For the first time in many years, significant changes are coming to the Form 1099-MISC, in particular with how contract labor pay is reported. Businesses will no longer use the 1099-MISC to report contract labor pay, but will instead use Form 1099-NEC, a form last seen in 1982 that is being brought back into use by the IRS.

This webinar will cover the scenarios where a 1099-MISC or 1099-NEC needs issued, and the scenarios where reporting is not required. We will also cover Form 1099-K and how it interacts with the 1099-MISC and 1099-NEC. The electronic filing mandate is changing as well and is dropping, so more businesses will fall under the e-file mandate. Penalties will apply for not complying. We will cover the e-filing mandate, other penalty situations, and how to potentially get out of penalties.

Session Highlights:-

• Why file a Form 1099? & Who must issue 1099?
• To identify the rules requiring W-9 documentation and 1099 reporting for various types of forms.
• To recognize how to establish an independent contractor relationship with the right documentation.
• To recognize the rules and keep your company in compliance
• To identify that your records are correct and will stand the scrutiny of an IRS 3rd Party Documentation and Reporting audit
• Using Form W-9 for compliance
• Line-by-line through the W-9
• Other compliance tips
• How Form 1099-K interacts with the 1099-MISC and 1099-NEC

Why You Should Attend:-

This webinar includes the latest update on  Form 1099-NEC which is being Resurrected by IRS & it will be used to report payments made to independent contractors. 

The attendees of the webinar would learn:

• What constitutes a reportable transaction?
• What are the rules regarding paying and IRS reporting on Independent Contractors?
• How do we avoid the IRS CP-2100 (B-Notices)? What if our vendor/payee claims exemption; must we obtain a W-9 anyway? 
• What are the best practices for handling our information reporting obligations?
• How can we minimize the risk of improper exemption claims by our payees and vendors? 
• Different due diligence procedures shield an issuer from penalties even when the forms contain incorrect information.

Who Should Attend:-

• HR Professionals/Managers
• CFOs and controllers
• Tax preparers
• CPA
• Public Accountants
• Accounting managers
• Accounts payable processing professionals
• Employers and Business owners
• CPAs and Enrolled Agents
• Purchasing managers and professionals