This habit will make you 50% less stressed at this time next year.

We are heavy into tax season over here! We are checking reports, double checking reports, collecting statements and working hard to get 2024 tied up in a neat bow for all our clients. Can we talk to you about a habit that would make this time of year a little easier?

For those of you who use contractors, you may or may not realize that some of them will need a 1099 at the end of the year to report their earnings. There’s some nuances here, but basically if you paid a non-employee more than $600 for a service (not a physical product), you will have to issue them a 1099. In order to do that, you will need to collect a W9 form from them that has their legal information, including their tax ID number.

Pretty simple, right? Yes…and also no.

You see, this process can be pretty simple if you get in the habit of getting that W9 right away when you start working together. In fact, some folks have a policy that says that they won’t do one shred of business with you until they have one. While that may seem harsh, it’s a pain in the you-know-what to try to gather all those W9’s at the end of the year (especially when you have a bunch to deal with).

If you are one of our clients, you may see requests for these documents (or at least an email so we can track it down) as your contractors hit the $600 threshold. Don’t put it off! The end of the year is hectic enough with REGULAR life AND trying to get your business books closed out for the year. So do yourself (and your bookkeeper) a big favor and gather as you go!

Want to know more about the specifics of 1099’s? Check out the post pinned at the top of our page!