I am a sole proprietorship business. I pay an contractor over $12,000 each year. I They filled out a W9. How do I file with the IRS the amounts and issue them a 1099?

[amymbeckstead]

I have search for the answer and I'm having trouble knowing what to do.

[VolvoGirl]

You need to give a 1099Misc to anyone you paid $600 or more to for the year. But not to corporations or for merchandise. You send the IRS a copy of the 1099Misc with the transmittal summary form 1096. These are due to the person by Jan 31 and to the IRS by Jan 31 also.

How to create W2s and 1099

https://ttlc.intuit.com/community/forms/help/how-do-i-create-w-2-and-1099-forms-in-turbotax/00/25869

But Quick Employer Forms is closed right now to get ready for 2020.  Do you need to do a 2019 1099Misc?

here is IRS 1099Misc 

https://www.irs.gov/pub/irs-pdf/f1099msc_19.pdf 

and instructions 

https://www.irs.gov/pub/irs-pdf/i1099msc_19.pdf 

For 2020 there is a new form 1099 NEC

https://www.irs.gov/pub/irs-pdf/f1099nec.pdf

[Opus 17]

In addition to the Quick Employee forms in Turbotax or Quickbooks, there are several web sites where you can prepare and e-file a 1099 form, with a copy for you, a copy to the vendor, and a copy to the IRS.  Usually about $5 per form.  I can't vouch for a specific provider. 

[Opus 17]

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@VolvoGirl wrote:

You need to give a 1099Misc to anyone you paid $600 or more to for the year. But not to corporations or for merchandise. You send the IRS a copy of the 1099Misc with the transmittal summary form 1096. These are due to the person by Jan 31 and to the IRS by Jan 31 also.

For 2020, the form to report non-employee compensation (compensation for work performed where the person is a contractor and not an employee) is form 1099-NEC.

1099-MISC will continue to be used for other payments like royalties and prizes.