
If youâre a business or a non-profit based in the US and youâve 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 âMiscellaneous Incomeâ, is used to report all the payments youâve made to any non-corporate entities (such as independent contractors) for their services. This form is used to report ânon-employee compensationâ to the IRS.
Note: If youâre an independent contractor or freelancer, all the business that youâve 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. Hereâs how to fill out form W-9 on a Mac.