If you’re a business or a non-profit based in the US and you’ve utilized the services of independent contractors or freelancers, you will have to prepare the IRS Form 1099-MISC and provide it to them after they submit the IRS Form W-9. The 1099-MISC, officially titled ‘Miscellaneous Income’, is used to report all the payments you’ve made to any non-corporate entities (such as independent contractors) for their services. This form is used to report “non-employee compensation” to the IRS.
Note: If you’re an independent contractor or freelancer, all the business that you’ve worked with over the last financial year and have paid you for your services will have to issue the Form 1099-MISC to you, after you submit the IRS Form W-9 for the services rendered by you. Here’s how to fill out form W-9 on a Mac.