Never pay anyone a single penny until that form is filled in for this very reason.
So do you pay in cash/check/credit card? Does she give you receipts ?
If she refuses to give you the proper information for the 1099 then either fire her and/or tell her you will still be giving her a 1099 and she would be the one paying the penalty ...
You can still issue a 1099-MISC without the social security number. However, to maintain compliance with IRS guidelines, you must make a formal request to the subcontractor for his identification number before the end of the year.
If you do not have the Social Security number by the time to file Forms 1099-MISC, you should leave the identification number box empty, but still submit the report to the IRS.
The IRS will send a notice stating that the number is missing. This notice must be sent along with a backup withholding notice and W-9 form to the subcontractor. This notifies the subcontractor that he will be subject to withholding until he submits his identification number. He is also subject to a penalty of $50 for failure to furnish the Social Security number to you.
