1099 YEAR END PREP
As 2024 comes to a close, churches and similar organizations must prepare for filing 1099 forms. The 1099 is an IRS form used to report various types of income other than wages, salaries, and tips. Specifically, it’s essential for reporting payments made to contractors and freelancers.
Not all contractors need 1099’s filed. For example, if your pest control service is incorporated as an S-corp, they will not need a 1099 filed. But if it’s a sole proprietor, they will. The good news for ChurchBiz clients is that we will do the work to figure out who needs a 1099 and who does not. All we need is a W9 for each vendor you have paid throughout the year, and from the W-9, we can decide if a 1099 needs to be filed. A W-9 form includes the vendor's legal name, identification number, and business type.
Here is what you can do to make sure everything is filed correctly.
Before paying any vendor, make sure to request a W9. If you have an A/C company come do work at the church, ask for a W9. If you pay someone to help with childcare, cleaning, painting, etc., make it part of your payment process to request a W9 before issuing payment. Once you get the W-9 form, pass it to your ChurchBiz rep. They will keep it on file and have it ready to check when it’s time to file 1099’s.
Request Missing W9s - Inevitably, payments will be made to vendors who don’t submit a W9. Your ChurchBiz rep can run a report for the year and let you know which vendors were paid more than $600 and needed a W9. Typically, we run this proactively and will send you a list of missing W-9s in mid-December. You can then email the vendors on the list and get their W-9s to us as they turn them in. Our deadline is typically around January 20th to get these turned in so we can file at the end of January.
Filing 1099s - In late January, our team will file 1099s for all contractors who need them. We will keep you updated and keep a copy of those files. Vendors will receive an email of their filed 1099 if we have their email on file. They should also receive a copy of the 1099 via mail. And if, for some reason, it goes to the wrong email or address, we will have the backups on file for you to give them directly.
If you have any questions about 1099s, please contact us. You can talk to your CSR or email info@ChurchBizSupport.com.