Agenda - Council - 03/11/2014 - Laserfiche WebLink

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QUICK REFERENCE GUIDE FOR PUBLIC EMPLOYERS Exceptions to Reporting Requirements Information returns are not required for: a) Generally, payments to exempt organizations, including units of government. b) Payments by a broker to his/her customer. c) Generally, payments to a corporation; but required for payments to a corporation for legal, medical and health care services, Federal executive agency payments, and certain other items. d) Payments of bills for merchandise, telegrams, telephone, freight, storage and similar charges. e) Payments of rent made to real estate agents. f) Salaries and profits paid or distributed by a partnership to the individual partners. g) Payments of commissions to general agents by fire insurance companies or other companies insuring property. h) Payments made by merchant or credit card reportable by the payment settlement entity on Form 1099-K. Payments for services not specifically excluded are reportable on an information return. You should obtain vendor information before any payments are made. Use Form W-9, Request for Taxpayer Identification Number and Certification, or a substitute, to collect the owner's name (if sole proprietor), legal business name, mailing address, taxpayer identification number. Under the backup withholding provisions, if the vendor fails to supply an identification number, the payer must withhold 28% and report these amounts to the IRS on annual Form 945. The person or entity receiving the payment will claim the amount withheld as a credit on its income tax return; the amounts are not returned by the payer. Backup withholding is discussed in the next section. When and How To File Payers responsible for filing 250 or more information returns per year must file them electronically. This requirement applies separately to each type (1099-MISC, 1099-INT, etc.) Filers of less than 250 returns may file electronically or use paper forms. For each information return you are required to file, send copy B to the recipient by January 31 of the following year. Send copy A to the IRS by the last day of February, or by March 31 if filed electronically. Basic information about information return requirements is available in the General Instructions for Certain Information Returns, as well as in the individual form instructions, such as Instructions for Form 1099-MISC. These instructions are revised annually as new versions of the forms are produced. 18