1099 for C Corp

[stech]

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

[ThomasM125]

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

[stech]

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]

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.

[stech]

Thanks!

what about that 1099? hired a contractor to put a billboard? Law firm to do paper work and accounting services setup. I had an IT guy some set computers. these were contractors.  Can I file 1099 for these>

I searched on google that can C Corp file 1099, answer were was no. Which I don't think is correct

[JulieS]

Yes, a C-Corporation can issue 1099 forms to contractors. 

The deadline for filing 1099s on time was January 31, 2024, so you may want to look at whether you are required to file late 1099 forms. The penalties ‌for filing 1099 forms late range from $60 – $310 per form (tax year 2023), depending on how late they are.

The IRS says you should file Form 1099-NEC for each person in the course of your business to whom you have paid at least $600 during the year:

• Who isn't your employee.
• Who you paid for services in the course of your trade or business.
• You made the payment to an individual, estate, or, in some cases, a corporation.
   

However, you don't usually report payments made to C or S Corporations unless they are:

• Attorneys' fees reported inbox 1.
• Payments by a federal executive agency for services (vendors) reported inbox 1.

Payments made with a credit card, or other electronic payment system aren't subject to reporting on Form 1099-NEC. Follow this link for more details about Form 1099-NEC. 

[stech]

Oh I missed the deadline to file 1099? If I file now, how would I know penalties? 

it’s a small C Corp. does it matter on how much amount? We had bad books so fixing took time that why it was delayed 

[ThomasM125]

Per the IRS, here is a schedule of penalties associated with not filing 1099 forms on time:

Here is a link to the full article:  Information return penalties