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What is a 1099 MISC used for?

Subcontractors and other non-employees paid $600 or more in a calendar year; not required for corporations, general partnerships, LLPs, or LLCs; must report to EDD within 20 days

Form 1099-MISC is used to report payments you’ve made to non-employees, such as subcontractors and other service providers, when those payments total $600 or more in a calendar year. This is separate from wages paid to employees, which are reported on a W-2. It isn’t for corporate taxes or for reporting consumer sales tax. In some cases there are state-specific reporting requirements (like to the EDD in California), but the form’s main purpose is to document payments to individuals or unincorporated businesses for services.

Employee payroll reporting for wages

Reporting corporate taxes to the IRS

Reporting consumer sales tax collected

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