Do have to send a federal copy of 1099 misc to ind. contractors?

Answer 1

Almost always. But it can depend on what they did and how they operate...if they are a corporation, then no. But to be clear...if they are employees...then they absolutely wouldn't get a 1099..it would go on their W-2.

Form 1099-MISC

Returns for payments of $600 or more made in the course of a trade or business can be filed on any appropriate form of the Form 1099 Series, though Form 1099-MISC, Miscellaneous Income, is generally used. The information to be reported on Form 1099-MISC includes:

l The names, addresses, and identification numbers of the payer and the payee. If the present address of the payee is not available, the last known post office address must be given. If the payee is not the owner of the income received, the payee must furnish the name and address of the actual owner upon the demand of the payer. If the payee fails to provide the information, he may be subject to criminal penalties for willful failure to supply information.. When checks for health care are made jointly payable to the provider and recipient of the health care services, the provider is treated as the payee. l Amounts paid as all types of rents. l Taxable prizes and awards that are not for services rendered. l Other types of income, such as taxable damage awards, including punitive damages and damages for nonphysical injuries, such as emotional distress. l Amounts of backup withholding. l Payments by medical and health care insurers to each physician or other provider of services under health, accident and sickness insurance programs. l Amounts paid as nonemployee compensation, including fees, commissions, prizes, awards or other forms of compensation for services rendered to the payer's trade or business by someone who is not an employee of the business. Nonemployee compensation includes such items as fees for professional services, referral fees, commissions to nonemployee salespersons. (Also, use this form to report the occurrence of direct sales of $5000 or more of consumer goods for resale.) Some payments are not required to be reported on Form 1099-MISC, although they may be taxable to the recipient. Payments for which a Form 1099-MISC is not required include: · Generally, payments to a corporation; · Payments for merchandise, telegrams, telephone, freight, storage, and similar items; · Payments of rent to real estate agents, ; · Wages paid to employees (report on Form W-2, Wage and Tax Statement); · Business travel allowances paid to employees (may be reportable on Form W-2); · Cost of current life insurance protection (report on Form W-2 or Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.); · Payments to a tax-exempt organization, the United States, a state, the District of Columbia, a U.S. possession, or a foreign government;