USA File 1099 under $600

[myshem]

A business may payout for independent contractors less than $600 without filing form 1099, my question is may a business payout for multiple contractors less than $600 and it will not turn on a red flag to the irs?

 

[kirby]

Will not turn on a "red flag".

 

[myshem]

Thanks For replying!!!
Does it not look like the business are paying out money without reporting?

Also, how do I report payouts to Non-Employees on form 1120/s

 

[kirby]

No. If you are following the rules there is no problem.

Payments to non employees will not go under Wages and Salaries, which is for employees. Will go under Other which includes Legal and Professional fees. Hopefully, you have correctly classified these workers as non-employees.

 

[myshem]

Thank You So Much!!!