W-9 & 1099 Requirements
June 1, 2019
Did you know, anytime you pay a “service” vendor over $600 you may need to issue them a 1099-MISC? You can be assessed a $250 penalty per vendor for failure to report properly. In order to provide a 1099-MISC, you must obtain a completed W-9 from all new “service” vendors prior to your first payment. Additionally, you should update W-9s from all current vendors at the beginning of each year to ensure proper recording of any entity type or address changes.
AccuPro helps our accounting clients keep track of the individuals or companies that meet these requirements throughout the year. We prepare 1099s so that our clients do not need to worry about the hassle of this tedious task. If we currently provide this service to you, you should provide a new or updated copy of the W-9 to our office as soon as you receive it.
Examples of “service” vendors who may require a 1099-MISC are attorneys, bookkeepers, landscapers, repair persons, consultants, advertisers, the list goes on. Our advice is always, if in doubt, get a completed W-9!