By Hope Ramirez - January 22, 2013
It’s that time of year again, time to get everything in line for the tax man and don’t forget to file and send out your 1099s either! If you are currently operating a business – it is a federal requirement to file a 1099-Misc (Misc. Income) for every person you have paid $600 or more in the current tax year. To qualify as part of the $600 total, payments must have been made in the course of your trade or business. This means that personal payments need not be reported. The Form 1099-Misc is most commonly used to report non-employee compensation (Box 7) but there are various other reasons to file Form 1099’s such as rent payments, and attorney fees. See irs.gov for more details.
For the purpose of Form 1099-Misc, non-employee compensation is only considered if these 4 conditions are met: the person is not your employee, the payment(s) were for services done in the course of your trade or business, the payment(s) were made to an individual, partnership, or an estate & the total of all payments amount to $600 or more. Keeping track of such payments can be a daunting task unless you’ve got a software solution on your side. Be sure when searching for a DMS that you consider their ability to track such payments, it will make tax season that much easier!
ABCoA is a Software-as-a-Service company dedicated to the subprime industry. Our cloud-native ecosystem handles every part of business operations - improving productivity, security and accuracy, while consolidating vendors and reducing costs.
Since 1983, ABCoA has helped buy here pay here used car dealerships and subprime finance companies eliminate duplication, remain compliant, and achieve success with complete, customer-driven software and dependable support. Customers properly using Deal Pack have never lost an IRS audit.
Recently awarded Top Online Accounting Software for Deal Pack, ABCoA continuously elevates the standard for software in the subprime industry and helps customers grow through our commitment to quality, innovation, and service. Headquartered in Jacksonville, Florida with employees across four states, we remain family-owned and operated.
To learn more about ABCoA, visit www.abcoa.com.
Request a Demo