Did You Pay a Contractor?

If you pay a person, say a contractor, you may have to file Form 1099-MISC to report your payment to the person for their services to you or your business.  The conditions to check for are:  1. You made the payment to someone who is not your employee; 2. You made the payment to an individual, a partnership, an estate, or a corporation; 3. You made the payment for services in the course of your trade or business; and 4. You made payments to them of $600 or more during the year.

When you submit Form 1099-MISC, there is a summary form to submit as well.  If the person you paid is a nonresident alien, use Form 1042-S Foreign Persons' U.S. Source Income Subject to Withholding and some withholding may be required.

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