Expert: Ed McFarland - 9/23/2005

Question
Hi,
I have 2 salespeople working for me (they are not employees of my company).  To ensure the IRS knows about them, do I have to issue some form to them (a friend mentioned a 1099) at the end of the year?  Over several months they will be making tens of thousands of dollars and I don't know how to handle this.
Thanks very much for your assistance!
Kathy

Answer
If they are contractors then at the end of the year you'll provide them with a 1099 form. If you use a payroll service for other employees, some will offer it as a service, your accountant can provide it or you can go to an office supply store and get the forms.

If they have been at it for a while they will have been submitting quarterly payments to the IRS. If they are true contractors, they should be aware of this.

Good luck