QBP2007 1099 MISC Independent Contractors.


J

Jacob

Can 1099's be generated for "Independent Contractors"?
Should they be set up as Vendors? These are not employees.
Example: Purchased mechanical heating cooling system hardware from a vendor
that does not install. The vendor recommended an independent contractor to
install and maintain when required. This independent contractor is not a
business but does this type of service part time.
 
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L

Laura

Jacob said:
Can 1099's be generated for "Independent Contractors"?
Should they be set up as Vendors? These are not employees.
Example: Purchased mechanical heating cooling system hardware from a
vendor that does not install. The vendor recommended an independent
contractor to install and maintain when required. This independent
contractor is not a business but does this type of service part time.
Independent contractors should be set up as vendors. They need to be given
1099s if you paid them more than $600 in services. Make sure you get a
completed w-9 from them so that you can see what type of company (SP, LLC,
S-Corp, C-Corp). Corporations do not get 1099s but SP & LLCs do.
 
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A

Allan Martin

Jacob said:
Can 1099's be generated for "Independent Contractors"?
Should they be set up as Vendors? These are not employees.
Example: Purchased mechanical heating cooling system hardware from a
vendor that does not install. The vendor recommended an independent
contractor to install and maintain when required. This independent
contractor is not a business but does this type of service part time.
The person has a business, he/she is in the business of installing and
maintaining heating systems. The fact that this service is performed on a
part-time basis is not relevant.
 

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