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nwetter
New Member

I own a small business. I have vendors that rent booth spaces. I run all sales through my register and bank. I then pay them for their items that sold every 2 weeks. Do I need to give them a 1099 misc. form showing the amount that i payed to them for

 
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Coleen3
Intuit Alumni

I own a small business. I have vendors that rent booth spaces. I run all sales through my register and bank. I then pay them for their items that sold every 2 weeks. Do I need to give them a 1099 misc. form showing the amount that i payed to them for

It depends how much you paid them. If you paid at least $600, yes you must issue a 1099-Misc. The fact that you took in the gross amount on the product and then gave it to them would indicate that this would be part of their compensation.

Here is a further list from the IRS:

Form 1099-MISC, Miscellaneous Income

File this form for each person you paid during the year:

  1.  at least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest;
  2. at least $600 in:
  • rents
  • services performed by someone who is not your employee;
  • prizes and awards;
  • other income payments;
  • medical and health care payments;
  • crop insurance proceeds;
  • cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish;
  • generally, the cash paid from a notional principal contract to an individual, partnership, or estate;
  • payments to an attorney; or
  • any fishing boat proceeds,


From <https://www.irs.gov/uac/about-form-1099misc>

 

 

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1 Reply
Coleen3
Intuit Alumni

I own a small business. I have vendors that rent booth spaces. I run all sales through my register and bank. I then pay them for their items that sold every 2 weeks. Do I need to give them a 1099 misc. form showing the amount that i payed to them for

It depends how much you paid them. If you paid at least $600, yes you must issue a 1099-Misc. The fact that you took in the gross amount on the product and then gave it to them would indicate that this would be part of their compensation.

Here is a further list from the IRS:

Form 1099-MISC, Miscellaneous Income

File this form for each person you paid during the year:

  1.  at least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest;
  2. at least $600 in:
  • rents
  • services performed by someone who is not your employee;
  • prizes and awards;
  • other income payments;
  • medical and health care payments;
  • crop insurance proceeds;
  • cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish;
  • generally, the cash paid from a notional principal contract to an individual, partnership, or estate;
  • payments to an attorney; or
  • any fishing boat proceeds,


From <https://www.irs.gov/uac/about-form-1099misc>

 

 

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