mybbd 1099 Reporting

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1 mybbd 1099 Reporting TABLE OF CONTENTS CLICK ON THE BLUE TEXT IN ANY SECTION TO JUMP TO THAT PAGE 1) Reporting Instructions This is a rundown of what you need to do. 2) Publ 1779 Ind Contractor or Employee This is the IRS rules on independent contractors. 3) Biz Fact 1099 Reporting This is information on who you should send a ) Electronic Payment Authorization This is the payment authorization form to send to BBD if we are preparing your 1099 s. 5) 1099 Request Form This is the request form to send to BBD with the information for each 1099 to be prepared. 6) Uploading a file to mybbdpass This is information on how to upload your request and payment authorization to mybbdpass. Business by Design 4918 Lincoln Drive, Edina, MN ph: web: mybbd.com

2 1099 REPORTING INFORMATION Do you need to send 1099 s for payments made in 2018? If you, individually, or your corporation, paid $ or more to any one individual or required business (including LLC s that are not taxed as a corporation) in 2018, you are REQUIRED to prepare a 1099 for each individual or business. (NOTE: No 1099 is required if you pay a Corporation). Click Here for IRS Rules: Publ Indpdt Contractor or Employee Click Here for Biz Fact on 1099 Processing: Form 1099 Reporting The Payee must receive their 1099 by January 31 st, 2019 and the IRS needs to receive their copy by January 31 st, PLEASE NOTE: The IRS will be imposing a penalty if you fail to provide the recipient and the IRS copies of the 1099 s. The penalty is $250 for each IRS and payee copy not filed or furnished to the recipient, respectively. For example, if you were required to do s and you do not do them, it would result in a penalty of $2500. If you are required to issue 1099 s you have two options. Please choose one. Option #1: Prepare these yourself by the due dates stated. You can get the forms from the IRS directly by calling the IRS or purchasing them at your local office supply store. Option #2: Business by Design will prepare these forms for a fee. Our fee is $ for two (2) 1099 forms and $25.00 for each additional form For example: we prepare s-the cost is $175. These fees include preparing the 1099 s and the applicable 1096 form. We will not prepare these returns without a payment authorization on file. No charges will be processed until the 1099 s are completed and reviewed by you. Click for Payment Authorization: Payment Authorization Form Click for 1099 request form (FILL-IN): External 1099 Request - Fill In Who the Payer is (you or corporation name) Who the Payee is (the name of the person or business that was paid) of the Payee. Social Security Number of the Payee. Amount Payee was paid in What is payment for: services, rent, mortgage interest, interest, etc. FOR 2018: All of your 1099 information should be uploaded to us using the Secure Exchange on mybbdpass by January 23rd, Any handwritten information must be legible. For information on uploading your documents click here: Uploading to mybbdpass Secure Exchange PLEASE BE CERTAIN YOUR INFORMATION IS CORRECT: There is a $ fee per 1099 for 1099 s that need to be corrected and reissued because of erroneous information received. Therefore, it is important you send us the correct and complete information. If you have any other questions, you can contact Karin Horkey at Business By Design karinhorkey@mybbd.com) or Business by Design 4918 Lincoln Drive, Edina, MN ph: web: mybbd.com

3 IRS Tax Publications IRS Electronic Services? EMPLOYEE? INDEPENDENT CONTRACTOR OR

4 Independent Contractor or Employee Which are you? For federal tax purposes, this is an important distinction. Worker classification affects how you pay your federal income tax, social security and Medicare taxes, and how you file your tax return. Classification affects your eligibility for social security and Medicare benefits, employer provided benefits and your tax responsibilities. If you aren t sure of your work status, you should find out now. This brochure can help you. When You Are an Employee... Behavioral Control Financial Control Relationship of the Parties When You Are an Independent Contractor...

5 Featuring: Who must file? Form 1099 Reporting File Form 1099 MISC, Miscellaneous Income, for each person or required business (including LLC s that are not taxed as corporations) to whom you have paid during the year: At least $600 in: 1. rents (box 1); 2. services performed by someone who is not your employee (including parts and materials), box 7; 3. prizes and awards (see instructions for boxes 3 and 7; 4. other income payments (box 3); 5. medical and health care payments (box 6); 6. crop insurance proceeds (box 10); 7. cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish (box 7); 8. generally, the cash paid from a notional principal contract to an individual, partnership, or estate (box 7); 9. Payments to an attorney. See Payments to attorneys, later; or 10. Any fishing boat proceeds (box 5). Trade or business reporting only: Report on Form 1099 MISC only when payments are made in the course of your trade or business. Personal payments are not reportable. You are engaged in a trade or business if you operate for gain or profit. Exceptions: Some payments do not have to be reported on Form 1099 MISC, although they may be taxable to the recipient. Payments for which a Form 1099 MISC is not required include all of the following. Generally, payments to a corporation (including a limited liability company (LLC) that is treated as a C or S Corporation). But see Reportable payments to corporations, later. Payments for merchandise, telegrams, telephone, freight, storage, and similar items. Payments of rent to real estate agents. But the real estate agent must use Form 1099 MISC to report the rent paid over to the property owner. See Regulations section (e)(5), Example 5, and the instructions for box 1. Reportable payments to corporations: The following payments made to corporations generally must be reported on Form 1099 MISC. Medical and health care payments reported in box 6. Fish purchases for cash reported in box 7. Attorneys' fees reported in box 7. Gross proceeds paid to an attorney reported in box 14. Substitute payments in lieu of dividends or tax exempt interest reported in box 8. Payments by a federal executive agency for services (vendors) reported in box 7. For additional information please view the IRS Instructions for Form 1099 MISC here: *This information should be used as a guideline. Specific questions regarding this Biz Facts should be directed to a Business by Design, Inc. tax professional.

6 4918 Lincoln Dr. Edina, MN p f Electronic Payment Authorization Form This is your agreement to engage in Business By Design s services and consent to an Electronic Payment Authorization for said services provided by Business By Design. Here s how the Electronic Payment Authorization will work for you: You provide Business By Design with the method of payment for services. (See detail below) Business By Design will prepare your 1099 Forms and/or services to completion. Once complete, your 1099 Forms our billing will be reviewed with you by one of our representatives. PAYMENT APPROVAL INFORMATION: Business By Design will not process any payments without your confirmation. I (client name) authorize Business By Design to debit my account in the amount approved for Form 1099 preparation services. All payments will need to be approved and cleared to Business By Design prior to the filing of your Form 1099 s to all Federal and agencies. CHECKING/SAVINGS ACCOUNT Bank Name Account Number Bank Routing # Bank / If you are unsure of your account s routing number, please attach a copy of a void check with this form. Account Type: Checking Savings CREDIT CARD/DEBIT CARD Visa MasterCard American Express Cardholder Name Account Number Exp/Date CCV (# on back) Billing,, Zip Phone# SIGNATURE DATE By signing this authorization I agree to have Business By Design debit my bank account/credit card for the above-mentioned services. If this debit does not take place for any reason, I agree to pay Business By Design in an alternative method and pay any fees associated with a declined payment. I agree to notify Business By Design in writing of any changes in my account information or termination of this authorization 15 days prior to the next due date of the charges. I understand that cancellations must be made in writing and I will not dispute merchant billing, so long as the amount corresponds to the terms indicated in this contract.

7 Prior to completing this form please review the Biz Fact on Form 1099 Processing and IRS Publication 1779 on Independent Contractors. SIGNATURE REQUIRED BELOW Your Name: Company Name(Will Appear on 1099 as the Payor): Who is getting the 1099: mybbd 1099 Request Form This is a fill in form. Please type your responses before printing form. By signing this form, you acknowledge you have read the IRS Publication 1779 on Independent Contractors. Business by Design is not responsible for incorrectly provided or misreported information on Form Signature

8 MYBBD HOW TO... Issue # Using FEATURING: Secure Exchange STEP BY STEP INSTRUCTIONS FOR UPLOADING YOUR FILES TO BBD. Steps to Upload a file to BBD by Paul Miller IN THIS ISSUE 1 st From Left menu, click on File Exchange 2 nd Click Secure Exchange Upload Documents Here 3 rd From menu bar, click Upload 4 th Click Add Files or just drag files here. 5 th IMPORTANT: Must click Start Upload Now close the upload box, and verify your documents are in your folder. That is it!