Do I Need To Make Myself A Form 1099?

Question

I do bookkeeping for a small business.
Since I am no ownership interest, I work as a "contract employee" and make myself a check monthly for my services.
I do not withhold taxes and settle up at the end of the year since I have other sources of income.
Do I need to make myself a Form 1099 since I do the books, write my own check, and know what I made last year.

Actually no connemara, A 1099 does not go to the IRS with MY taxes.
A Form 1096 goes with the business' taxes. And an independent contractor or "contract employee" receives a Form 1099 for their records.
BTW, I said I'm a bookkeeper, not a tax preparer or an accountant.
There is a big difference between them.

Yes STEVEN F, you are correct. There is no such thing as a "contract employee" it's an oxymoron.
That is why I put it in quotes.
If you say independent contractor, some people think you are talking about construction.
It's sort of like saying "I'll have a coke" when you mean a cola.

Answer 1

A 1099 needs to go to everyone who received $600 or more for services rendered during the year. If you rendered services, you need a 1099 for yourself.

BTW if you do magnetic submissions, you don't send 1099s to the IRS, but if you don't, you had better be sending a paper copy to them!

Answer 2

The business that you work for sends you the 1099. For tax purposes there is no such thing as a "Contract Employee". You are either an employee subject to withholding and receive a W-2, or you are an independent contractor an receive a 1099.

Answer 3

If taxes were not withheld from your paycheck and paid in during the year and you made more than $600.00 you will need a 1099-Misc Form.

The red copy of the 1099-Misc Form and a red copy of a 1096 Form need to be submitted to the IRS. You will also need to send your state a copy (in Alabama you will send it with a Form 96).

The company who paid you will need a copy and the rest are yours to file with your taxes.

When you are an "employee" the employer will withhold taxes from your paycheck and pay in their part of Social Security and Medicare to match what was withheld from your pay. Since you did not have taxes withheld you are considered "contract labor" and you will have to pay both parts of Social Security and Medicare. Since you are paid as contract labor you are considered self-employed and it will actually cost you more in taxes when you go to pay at the end of the year.

Answer 4

No, what you would receive would be 1099 from your clients, that is if you earned more than the treshhold and if your clients would give you 1099.

Answer 5

Yes you do because a copy needs to accompany your federa tax form when you file your taxes. As a bookeeper, I would hope you already KNEW this!