Found makes it easy for you to track payments made to contractors and generate 1099 forms for them if those payments exceed $600. Here’s how:
1099s require specific information:
Your name, address and phone number
Your TIN (EIN or SSN)
Recipient’s TIN (EIN, SSN, ITINs, ATINs)
Recipient's name and address
How much they were paid
We’ll take care of your information based on your Found account information. But, to ensure that your contractor’s information is correct, you’ll need to either enter it manually or send an information request. Here’s how:
In Found, navigate to your Business Contacts list and find your contractor. (If the contractor is new, you can add them with the Add a business contact button.
Tap the name of the contractor and then open the menu in the top-right corner of the screen.
Choose Mark as contractor from the list. You’ll be able to either enter their information manually or send them a link to provide that information themselves.
If you send your contractor the provided link, they’ll be able to securely share their name, business classification, TIN, and address with you.
When you make payments to business contacts marked as contractors, Found will automatically mark those payments as being 1099 payments going forward. If you’ve made payments in the past, you can mark those as 1099 payments as well. Here’s how:
Find the previous payment in your Activity feed.
Tap the payment to open it, then tap the menu icon in the top-right corner.
Choose the Mark as 1099 payment option from the menu.
Choose a Business Contact to associate the payment with.
Now that your contractor has been onboarded and has payments associated with them, once you’ve paid them at least $600, you can generate a 1099 for that contractor at any time. Just find them in the Contractors list in Business Contacts and tap Tax Documents. You can create a 1099 from this page on demand—need to add a payment or update information? Make the changes in Found and create a new 1099 from this page.
Keep in mind that it is your responsibility to distribute 1099s to your contractors who were paid $600 or more by January 31st of the following year.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
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The information on this website is not intended to provide, and should not be relied on, for tax advice.
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