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Generating the 1099-MISC and 1099-K

Last Updated:
March 30, 2017

In order to fill out and file the 1099, there are several key pieces of information you need to gather. The two main buckets are:

  1. Identification information about the recipient (taxpayer identification number)
  2. Information on the payments

The W-9 and Taxpayer Identification Information

Before you begin working with and paying a contractor or vendor you should have them fill out a W-9 form. This magical form holds the key to all the information about the recipient you’ll need when filling out their 1099. In the case that there are any errors on the 1099 form you ultimately file for that recipient, the IRS will want to know if you’ve collected a W-9. If you haven’t, then you could face fines and penalties.

There is no need to send the W-9 to the IRS, it’s purely for your records. Here’s what you’ll collect from a W-9 form that in turn will plug into a 1099:

  • Legal name (or official name of the LLC or business)
  • Address
  • Taxpayer Identification Number, Social Security Number, or Employer Identification Number
  • Business entity (S-corporation, C-corporation, LLC, etc)
  • Any backup withholding information (a very small number of taxpayers are required to notify companies they work with to conduct automatic withholding of a percentage [28%] of their paycheck for taxes)

Plugging Information into the 1099 Form

Paper filing

If you plan on filling out 1099-MISC forms by hand then you can’t simply print the forms out and write the information on them. You’ll need to order approved forms from the IRS or buy them at an office supply store. For a box-by-box guide to filling out the 1099-MISC by hand, this is a great guide.

Electronic filing

For electronic filing (which the IRS recommends and is required if you’re filing over 250 1099s), you’ll need to adhere to IRS’ Publication 1220 instructions for formatting files correctly. With electronic filing you can’t plug information into boxes the same way you would if manually filling out a 1099. The IRS’ FIRE system requires a special file format for electronic filing. 

Payable handles the translating of recipient tax identification information and payments information into the correct electronic file format for the IRS.

1099-MISC Box-by-Box Guide

Top Identification Information

1099-MISC box-by-box

Box-by-Box Reporting

1099 misc box by box

1099-K Box-by-Box Guide

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