Arthur L. Rubin" <ronnirubin[at]sprintmail.com> wrote:
- quote -

Shhh!!! Please don't go around saying this. The other
states may hear you

Drew Edmundson, CPA (NC)

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Harlan Lunsford wrote:
- quote -

Sorry. I suppose it might not be a bad idea, though.
(In Wal-Mart's case, I thought they were nominally employees
of subcontractors....)

I should add that, in California, upon contracting for
payment of over $600 or paying over $600 to an independent
contractor for which 1099 reporting is required (although
California hasn't conformed to recent changes in the
reporting requirements, so you have to be carefull), you
have 20 days to report that fact to the state, giving
their SSN -- suposedly for child support collection
purposes, although I'm sure the state can use it for
other purposes.

You can't just wait until 1099 filing time to gather
the information.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Arthur L. Rubin wrote:
- quote -

Uh.. ahhh. hmmm.....

Are you saying that an I-9 is required for a subcontractor
as WELL as for an employee? I don't think so.

Not even for Wal-Mart.

Cheer$,
Harlan Lunsford, EA n LA

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Charles wrote:
- quote -

(snipped

- quote -

And to drive the point home, today I'm making a list and
checking it twice... (sorry, wrong month) anyway, going
over a list of payments by a client and find no info on one
of his sub contractors. I call him of course, and he says
"that fellow worked maybe 4 weeks, and never would give me
his number, one excuse after another. He finally quit on me
and I ain't seen him since."

So I tell him the fellow effectively refused his number, and
we'll just prepare the 1099-misc anyway.

Of course there's risk of 50$ penalty (100$?)

Not to mention that this year first time there is a line on
schedule C (y'all notice it yet?) marked "contract labor!.

Who would do what?
a. prepare the 1099 and include the 1900$ in with contract
labor?
b. not prepare the 1099 but still include the 1900$ in
contract labor?
c. neither, but let client eat the deduction.

Cheer$,
Harlan Lunsford, EA n LA

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Charles wrote:
- quote -

TECHNICALLY, you don't need to until you pay or contract to
pay them over $600, but, but Michelle is almost certainly
correct as a practical matter.

- quote -

The I-9 (required before the employee is HIRED, which,
presumably, is before he is paid) usually has the Social
Security number. The rules generally state that you
withhold as Single/0 if you don't have a W4, so that's not
as important.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

"Michelle Kapp" <smfwdf[at]comcast.net> wrote:

- quote -

Yes. It is very important. As a public accountant for
small business that is one thing that really becomes an
issue at year end is having information not only for 1099
purposes but for W2 purposes. So you should make it a part
of your vendor payment system to request a W9 for every
vendor (incorporated or not) before you pay them a penny.
For a new employee the same thing applies, have a W4 before
the employee is to be paid a penny. This saves time at year
end when you are wondering how to get in touch with these
people to request the information.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

- quote -

Yes, you should have.

Carol
What can one expect of a day that begins with getting out of bed.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

We are a small trucking company and believe we have to issue
1099s to the following people, all unincorporated, who did
work for us this year, all making over $600:
- Outside bookkeeper
- Painter
- Carpenter
- Floor repair - what if carpet was installed?
- Land appraiser - paid directly by us?
- Landscaping Bus and driveway construction - include total
cost which includes equipment rent
- Rent- If to a R/E trust?
- Concrete contractor

Should we have gotten W-9's from these people when they
started? Obviously we just started this year so we're
learning.

Thanks, Peter

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->