Receiving 1099s and Self-Employment...

By Tom Douglass

Self-employment comes with a lot of responsibility. There is somewhat of an “honor” system in place when it comes to reporting income. Many employers will take deductions for your services or contract, yet forget or disregard sending you a 1099.  Just because you don't get a 1099, does not mean that you don’t have to report the income.

It is very difficult for the IRS to track a self-employed person's actual income if these reports are not filed.  It is beneficial to make a folder and include the clients or companies from which you expect a 1099.

The law states that whether you receive a 1099 or not, you MUST report your income.

If you want to learn more about 1099-MISC forms and how it affects you, the IRS is a great resource for further information.

Visit www.1099-etc.com for more information on how our software processes payroll and assists you further with being compliant and organized.