What Information Should Employers Include on 1099 Forms?


Quick Answer

Employers fill the name, addresses and federal identification numbers of their businesses, as well as their contract employees' names, addresses and Social Security numbers on 1099-MISC forms. Employers also fill the total amounts paid to contract employees for the year and any taxes withheld from these employees, states the Houston Chronicle.

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Full Answer

At the top of form 1099-MISC, an employer fills the basic information box that requires the name, physical address and telephone number of the business, along with the federal identification number of the business, explains the Houston Chronicle. Under employee details, the employer fills the employee's or contractor's full name, ZIP code, state, city and street address. In box seven, titled Non-Employee Compensation, the employer fills out the salary or wages paid out to the contract employee throughout the year. The employer also fills in the state and federal taxes withheld from the employee in the respective boxes, if any. Contract employees typically do not have taxes withheld by the employer who contracts them.

Employers use form 1099-MISC to report miscellaneous payments made to people who are not permanent employees or businesses that are not incorporated, according to the Internal Revenue Service. Employers report gross royalty payments exceeding $10, and payments or rent exceeding $600, as of 2015. The report of payment must be made to the IRS and the employee or contractor who received the payment.

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