1099 Filing
Year-end 1099 preparation and filing for contractors and vendors. Forms are prepared accurately and filed on deadline, with per-form pricing that scales with your vendor count.
The Deadline
1099 forms are due in January. Every business that paid contractors or vendors more than $600 during the year has to report those payments to the IRS and send copies to the recipients. The deadline is firm and the penalties for missing it are real.
January 31 is when recipients must have their forms. That same date is the deadline for filing with the IRS. There is no extension for 1099s the way there is for income tax returns. If you wait until mid-January to start gathering vendor information, you are already behind.
The Calendar
The Calendar
Recipients need their 1099 forms by January 31. Building year-end into your calendar means starting the process in early January, not scrambling in the final week. The businesses that treat this as routine are the ones with organized records behind them.
The Penalties
The Penalties
Late filing penalties start at $60 per form and increase the longer you wait. If you file more than 30 days late, the penalty jumps. File after August 1 or not at all, and it climbs higher. For businesses with many contractors, the fines add up quickly.
The Groundwork
The real work of 1099 compliance happens throughout the year. When you bring on a new contractor, you should collect a W-9 before you send the first payment. That form captures their legal name, address, and taxpayer identification number. Without it, you are chasing paperwork in January instead of closing your books.
Vendor records live in your accounts payable system. When those records are accurate and complete, 1099 preparation is straightforward. When they are missing information or filled with inconsistencies, the year-end process becomes a research project.
W-9 Discipline
W-9 Discipline
Collect W-9 forms before issuing the first payment to any contractor or vendor. This is the single habit that makes 1099 season painless. If you wait until year-end to request tax information, you will spend January tracking down people who may not respond quickly.
Clean Vendor Data
Clean Vendor Data
Kai Crest’s Accounts Payable service includes vendor setup and maintenance. That means the information you need for 1099 filing is already in place. Accurate names, current addresses, and valid tax identification numbers are captured when the vendor is onboarded, not reconstructed months later.
The Filing
For clients on an accounting engagement with organized vendor records, 1099 filing is a straightforward year-end task. Kai Crest prepares the forms, verifies the data, files electronically with the IRS, and delivers copies to recipients on time. The base fee ranges from $200 to $500 depending on complexity, plus $10 to $25 per form.
If the underlying records need work, cleanup is billed separately before the 1099s can be prepared. Missing W-9s need to be collected. Vendor payments need to be verified. That additional time is scoped honestly based on how much reconstruction is required.
Organized Records
Organized Records
Clean books all year make 1099 season a non-event. The vendor records are already accurate. The payment totals are already reconciled. Kai Crest pulls the data, prepares the forms, and files them. For clients on Core, Growth, or Managed accounting tiers, this is exactly how it works.
Records That Need Work
Records That Need Work
If your records are incomplete or disorganized, that needs to be addressed before the forms can be filed. Kai Crest will scope the cleanup honestly and complete it on a timeline that still meets the deadline. If you want to discuss where your records stand, reach out to schedule a consultation.
Hawaii's Trusted Accounting and Advisory Partner
The Next Step:
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