Frequently Asked Questions

What are 1099 forms?

The 1099 form is a document that tells the IRS how much you’ve earned, who made that payment to you and the purpose of the payment. It essentially allows the IRS to ensure the income reported by the Contractor matches up with the amount the business paid the Contractor.

Both businesses that paid more than $600 to independent Contractors (non-employees) and Contractors (not employees of the business) need to report this income to the IRS. This includes:

  • Contract payments
  • Commissions
  • Reimbursements
  • Awards
  • Bonuses

 

For Contractors

As a Contractor, it’s your responsibility to report your taxable income to the IRS. If you’ve received more than $600 while working as a Contractor for someone, you’ll need to complete a 1099 form.

You can reach out to your employer to get a 1099 form. It’s important to report your income as accurately as possible because your employer will also provide a copy to the IRS. It may be helpful to send them an Invoice Details Report from your FreshBooks account to speed up the process: 

Invoice Details Report

  1. Go to the Dashboard section
  2. Scroll down to the Advanced Reports section
  3. Click on Invoice Details
  4. Click on the for this Year text next to the report title
  5. Choose your Date Range, the Client (your employer), and click Apply to finish
  6. Click on the Send... button and email it to your employer. 

 

For Business Owners/Employers

As a business owner / employer, it’s your responsibility to report payments you’ve made to Contractors (over $600) to the IRS. You’ll need to provide a copy of the 1099 to both the IRS and the Contractor.

To do this, you’ll need two things – the amount you paid your Contractor and a blank template of the 1099 form to fill out.

If you haven't been logging Contractor payments as Expenses, you can get started with the steps here. Then run an Expense Report to find the total paid: 

  1. Go to the Dashboard section
  2. Scroll down to the Advanced Reports section
  3. Click on Expense Report
  4. Click on the for this Year text next to the report title
  5. Choose your Date Range
  6. For Group By, choose between Category (e.g., Contractors) or Vendor (name of Contractor)
  7. Click Apply to finish
  8. From here, you can use the totals to fill in your 1099 form. 

 

Blank Forms & Templates

Blank 1099 Forms for US Businesses:

  1. Go to this page
  2. Click on “Form 1099-MISC” which takes you to a blank PDF template.

If you're using Gusto: Gusto has a 1099 form that you can fill out for your contractors. The Gusto support page on the 1099 form can be found here.

Blank T4 Forms for Canadian Businesses:

The 1099 is called a T4 in Canada. You can use the CRA’s template here.

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