1099 for C Corp

Forum|Forum|2 years ago
April 2, 2024
1 reply
42 views

I have C Corp. can I issue 1099 to my sales staff?

TurboTax Home & Biz Windows

ThomasM125

Level 15

Depending on the nature of the work your sales staff does for you and the degree of control you exert over their duties, you may be able to treat them as subcontractors rather than employees. If so, you should issue them a Form 1099-NEC to report the payments you make to them.

You should review the requirements for treating a worker as a subcontractor as opposed to an employee, however, as the penalties for getting it wrong can be severe. You can learn more in the IRS article: Employee versus contractor - IRS

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stechAuthor

Level 6

I have 1 who is 100% contractor and one is w2. I’m giving the Bonus for year-end sales etc

the contractor is a marketing firm who I hired to do marketing etc

so I can issue 1099-NEC or 1099-MISC?

how do I issue 1099? Is their online services providers?

ThomasM125

Level 15

You would issue a Form 1099-NEC for commissions paid. You can do that through TurboTax. You will see an option for that when you choose the return you want to work on in TurboTax Business:

For the commission paid to the salary worker, you should include that in his or her wages. It is subject to payroll taxes just like a normal pay check.

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