Hi all!
I have a question I hope you can help me with. I am a bookkeeper with about 50 clients. Most of these clients have 1099 sub contractors and previously I always filed 1099/1096 using companies like Track1099.
In quite a few cases, the client started paying some sub contractors mid year via a payroll provider, or perhaps they used a credit card or Paypal to pay the vendor.
Those 3rd party institutions will report for the payments processed through them to the IRS.
I have read that it is ok to have multiple 1099's going to the same vendor from the same company (but through different institutions like payroll providers or Credit Card companies), you just need to make the vendor aware there are multiple 1099's coming from the company.
My question is on the 1096; I believe a 1099 is not required when all filings are done electronically? But if I use Track1099 and I download the info from QB (not counting the CC payments and payments made through a payroll provider) then the totals for the 1096 is off. Track1099 creates a 1096 based on the info you send them. So I just wonder how that goes, and what is the best course of action. Since there are many vendors I would prefer to be ok with letting the 3rd party institutions take care of what was paid through them, and we take care of what was directly paid by us to the vendors, but I am not sure if that is the right way to go about it because the 1096 won't be complete.
I hope I am being clear in what I am trying to convey 🙂
Thanks!
