How To Handle Your Independent Contractor's Taxes When Organising A Small Business Payroll

How do I handle my independent contractors' taxes?

If you pay an independent contractor, you'll generally be required to send them a 1099 form. It's best to send the 1099 form to the independent contractor by January 31, as they'll need it to file their own taxes, and to send a copy to the federal government by February 28.The 1099 form, in effect, looks just like a little coupon, but it needs to be transmitted with what's called a 1096 form, and a 1096 form is really just a totaller form. So if you're sending three 1099's that are $10,000 each, the 1096 form will say three forms are attached for a total of $30,000.