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January 2017 Newsletter Bookmark

Helpful Reminders For 1099-MISC Forms

It is the beginning of 2017, and that means that 1099 MISC forms will need to be filled out and submitted to the IRS. A Form 1099-MISC needs to be filed for each person to whom you have paid, during the year, in the course of your business, at least $600 in rents, services, (including attorney fees) other income payments, medical and health care payments.Payments for which a Form 1099-MISC is NOT required include all of the following:

  1. Generally, payments to a corporation. (See below)
  2. Payments for merchandise, telegrams, telephone, freight, storage, and similar items.
  3. Wages paid to an employee (report on Form W-2).
  4. Business travel allowances paid to employees.
  5. Distributions from Pensions, Annuities, Retirement Plans, IRA’s etc.

Here are some examples of what goes in the most common boxes:

BOX 1, RENTS
Real estate rentals paid for office space.
Machine rentals. If the machine rental is part of a contract that includes both the use of the and operator, prorate the rental between the rent of the machine (box 1) and the operator’s wages(box7)

BOX 6, MEDICAL and HEALTH CARE PAYMENTS
Enter payments of $600 or more made to each physician or other supplier or provider of medical or health care services. Include payments made by medical or health care insurers under health, accident, and sickness insurance programs. You are not required to report payments to pharmacies for prescription drugs. The exemption from issuing Form 1099-MISC to a corporation does not apply to payments for medical or health care services provided by corporations, including professional corporations.

BOX 7, NON-EMPLOYEE COMPENSATION
If the following four conditions are met, you must generally report a payment as non-employee compensation:

  1. You made the payment to someone who is not your employee
  2. You made the payment for services in the course of your business
  3. You made the payment to an individual, partnership, estate, or, in some cases, a corporation
  4. You made payments of at least $600 during the year.

Attorney fees of $600 or more paid in the course of your business are reportable in box 7. The term attorney includes a law firm or other provider of legal services. The exemption from issuing Form 1099-MISC to a corporation does not apply to payments for legal services. Therefore, you must report attorney fees paid to corporations that provide legal services. 



Read Full January 2017 Newsletter


Helpful Reminders For 1099-MISC Forms

It is the beginning of 2017, and that means that 1099 MISC forms will need to be filled out and submitted to the IRS. A Form 1099-MISC needs to be filed for each person to whom you have paid, during the year, in the course of your business, at least $600 in rents, services, (including attorney fees) other income payments, medical and health care payments.Payments for which a Form 1099-MISC is NOT required include all of the following:

  1. Generally, payments to a corporation. (See below)
  2. Payments for merchandise, telegrams, telephone, freight, storage, and similar items.
  3. Wages paid to an employee (report on Form W-2).
  4. Business travel allowances paid to employees.
  5. Distributions from Pensions, Annuities, Retirement Plans, IRA’s etc.

Here are some examples of what goes in the most common boxes:

BOX 1, RENTS
Real estate rentals paid for office space.
Machine rentals. If the machine rental is part of a contract that includes both the use of the and operator, prorate the rental between the rent of the machine (box 1) and the operator’s wages(box7)

BOX 6, MEDICAL and HEALTH CARE PAYMENTS
Enter payments of $600 or more made to each physician or other supplier or provider of medical or health care services. Include payments made by medical or health care insurers under health, accident, and sickness insurance programs. You are not required to report payments to pharmacies for prescription drugs. The exemption from issuing Form 1099-MISC to a corporation does not apply to payments for medical or health care services provided by corporations, including professional corporations.

BOX 7, NON-EMPLOYEE COMPENSATION
If the following four conditions are met, you must generally report a payment as non-employee compensation:

  1. You made the payment to someone who is not your employee
  2. You made the payment for services in the course of your business
  3. You made the payment to an individual, partnership, estate, or, in some cases, a corporation
  4. You made payments of at least $600 during the year.

Attorney fees of $600 or more paid in the course of your business are reportable in box 7. The term attorney includes a law firm or other provider of legal services. The exemption from issuing Form 1099-MISC to a corporation does not apply to payments for legal services. Therefore, you must report attorney fees paid to corporations that provide legal services. 



Read Full January 2017 Newsletter



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