¾Ã²ÝÈȾòÝÊÓƵ

Taxpayer Identification Number

The ¾Ã²ÝÈȾòÝÊÓƵ must obtain a taxpayer identification number from workers who will be paid as independent contractors.

Failure to Provide Taxpayer Identification Number

If an independent contractor is unable or unwilling to provide a taxpayer identification number, the ¾Ã²ÝÈȾòÝÊÓƵ must withhold 31% of the payment as backup withholding.

Form 1099-misc.

The ¾Ã²ÝÈȾòÝÊÓƵ will file Form 1099-Misc, when required, for all independent contractors earning $600 or more per year.

Reimbursement of travel, gift and entertainment expenses to independent contractors

• Travel or Gift Expenses
  Under Internal Revenue Service rules, the ¾Ã²ÝÈȾòÝÊÓƵ is not required to maintain detailed records of travel or gift expenses paid by a contractor, even if those expenses are reimbursed by the ¾Ã²ÝÈȾòÝÊÓƵ.
• Entertainment Expenses
  • Contractor adequately accounts to ¾Ã²ÝÈȾòÝÊÓƵ for expenses. 
    The ¾Ã²ÝÈȾòÝÊÓƵ must maintain records documenting each element of such expense.
  • Contractor does not account to ¾Ã²ÝÈȾòÝÊÓƵ for expenses.
    The ¾Ã²ÝÈȾòÝÊÓƵ may pay entertainment expenses as part of a contract amount. If the contractor is not required to document those expenses to the ¾Ã²ÝÈȾòÝÊÓƵ in order to be paid for them, then the ¾Ã²ÝÈȾòÝÊÓƵ does not need to keep detailed entertainment expense records.