Accounting, Payroll & Pension Issues/1099's


QUESTION: We are remodeling part of our business building. I have a Sub S corporation.  I have already paid for concrete, concrete finisher and limestone and grading.  They are all over $600.  Should I be giving them a 1099?

Also, I have a computer guy work on my computers from time to time.  It has never run over $600 a year.  However this year, it is $550, but in addition I have bought some used hard drives from him for $150 which would bring the total to $700 - so far this year.  How does this work?


ANSWER: If they are a corporation and billing you for the work you do not send a 1099 they are exempt. If they are in the case of the computer guy and he is not a corporation with a corporate number he should be sent a 1099.


---------- FOLLOW-UP ----------

QUESTION: So, if I'm to understand, I should give the concrete guy a 1099.  He didn't give me a bill.  I paid with a check when he finished the work.

As far as the computer guy, if his actual computer labor was only $550.  Do I still need to give him a 1099 because the other $150 was for hard drives?

None of these are incorporated.
Thank you.

If the concrete guy is a corporation no 1099. You will have to find out if he is a corporation or not. If he is not a corporation he gets a 1099.

I would not give the computer guy one as his labor was only 550.00, unless he asks for one. You are not prohibited from giving him one for less than 600.00 but you are not required to do so.

If you give either 1099's you will need a social security number or an EIN number.


Accounting, Payroll & Pension Issues

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Shirley McAllister, CPP, PHR


I can answer payroll questions, payroll tax questions, 401K questions. No stock option questions please and I have some knowledge of other pensions but am most familiar with the 401K pension. I can answer U.S.and Canada payroll questions proficiently and have a good general knowledge of UK and South Africa and some knowledge of Australia and New Zealand Payroll procedures. Please do not ask me homework questions I do not have time to answer them.


25 years with an international company in the Human Resources, Payroll and Payroll Tax areas.


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P.H.R., C.P.P., Canadian Payroll Administrator, Successfully passed APA class on UK Payroll Administration. Boise State University Human Resource Certification

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APA Hotline Citation of Merit for last 8 years.

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