FEATURING:

myBBD – 1099 Reporting TABLE OF CONTENTS CLICK ON THE BLUE TEXT IN ANY SECTION TO JUMP TO THAT PAGE  1)

Reporting Instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 

2)

Publ 1779 – Ind Contractor or Employee. . . . . . . . . . . . . . . . . . . . . . . 3 

3)

This is the payment authorization form to send to BBD if we are preparing your 1099’s.

1099 Request Form. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 

6)

This is information on who you should send a 1099.

Electronic Payment Authorization. . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 

5)

This is the IRS rules on independent contractors.

Biz Fact – 1099 Reporting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 

4)

This is a rundown of what you need to do.

This is the request form to send to BBD with the information for each 1099 to be prepared.

Uploading a file to myBBDPass . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 

This is information on how to upload your request and payment authorization to myBBDPass.

Business by Design | 4918 Lincoln Drive, Edina, MN 55436 | ph: 952-392-1200 | web: mybbd.com

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1099 REPORTING INFORMATION Do you need to send 1099’s for payments made in 2015? If you, individually, or your corporation, paid $600.00 or more to any one individual or required business (including LLC’s that are not taxed as a corporation) in 2014, you are REQUIRED to prepare a 1099 for each individual or business. (NOTE: No 1099 is required if you pay a Corporation).

 

Click Here for IRS Rules: Publ 1779 - Indpdt Contractor or Employee Click Here for Biz Fact on 1099 Processing: Form 1099 Reporting

Please note that the Payee must receive their 1099 by February 1st, 2016 and the IRS needs to receive their copy by February 29th, 2016. PLEASE NOTE: The IRS will be imposing a penalty if you fail to provide the recipient and the IRS copies of the 1099’s. The penalty is $250 for each IRS and payee copy not filed or furnished to the recipient, respectively. For example, if you were required to do 5 – 1099’s and you do not do them, it would result in a penalty of $2500. If you are required to issue 1099’s you have two options. Please choose one. Option #1: Prepare these yourself by the due dates stated. You can get the forms from the IRS directly by calling the IRS or purchasing them at your local office supply store. Option #2: Business by Design will prepare these forms for a fee. Our fee is $100.00 for two (2) 1099 forms and $25.00 for each additional form 1099. For example: we prepare 5- 1099’s-the cost is $175. These fees include preparing the 1099’s and the applicable 1096 form. We will not prepare these returns without a payment authorization on file. No charges will be processed until the 1099’s are completed and reviewed by you. Click for Payment Authorization: Payment Authorization Form Click for 1099 request form (FILL-IN): External 1099 Request - Fill In      

Who the Payer is (you or corporation name) Who the Payee is (the name of the person or business that was paid) Address of the Payee. Social Security Number of the Payee. Amount Payee was paid in 2015. What is payment for: services, rent, mortgage interest, interest, etc.

FOR 2015: All of your 1099 information should be uploaded to us using the Secure Exchange on myBBDPass by January 22nd, 2016. Any handwritten information must be legible. For information on uploading your documents click here: Uploading to myBBDPass Secure Exchange PLEASE BE CERTAIN YOUR INFORMATION IS CORRECT: There is a $200.00 fee for 1099’s that need to be corrected and reissued because of erroneous information received. Therefore, it is important you send us the correct and complete information. If you have any other questions, you can contact Karin Horkey at Business By Design [email protected]) or 952-392-1210.

Business by Design | 4918 Lincoln Drive, Edina, MN 55436 | ph: 952-392-1200 | web: mybbd.com

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Independent Contractor or Employee Which are you? For federal tax purposes, this is an important distinction. Worker classification affects how you pay your federal income tax, social security and Medicare taxes, and how you file your tax return. Classification affects your eligibility for social security and Medicare benefits, employer provided benefits and your tax responsibilities. If you aren’t sure of your work status, you should find out now. This brochure can help you.

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Featuring:

Form 1099 Reporting Who must file?  File Form 1099‐MISC, Miscellaneous Income, for each person or required business (including LLC’s that are not taxed as corporations) to  whom you have paid during the year: 



At least $600 in:  1. rents (box 1);  2. services performed by someone who is not your employee (including parts and materials), box 7;  3. prizes and awards (see instructions for boxes 3 and 7;  4. other income payments (box 3);  5. medical and health care payments (box 6);  6. crop insurance proceeds (box 10);  7. cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching  fish (box 7);  8. generally, the cash paid from a notional principal contract to an individual, partnership, or estate (box 7);  9. Payments to an attorney. See Payments to attorneys, later; or  10. Any fishing boat proceeds (box 5). 

Trade or business reporting only:   Report on Form 1099‐MISC only when payments are made in the course of your trade or business. Personal payments are not reportable.  You are engaged in a trade or business if you operate for gain or profit.    Exceptions: Some payments do not have to be reported on Form 1099‐MISC, although they may be taxable to the recipient. Payments for  which a Form 1099‐MISC is not required include all of the following. 

  

Generally, payments to a corporation (including a limited liability company (LLC) that is treated as a C‐ or S‐Corporation). But see  Reportable payments to corporations, later.  Payments for merchandise, telegrams, telephone, freight, storage, and similar items.  Payments of rent to real estate agents. But the real estate agent must use Form 1099‐MISC to report the rent paid over to the  property owner. See Regulations section 1.6041‐1(e)(5), Example 5, and the instructions for box 1. 

Reportable payments to corporations:    The following payments made to corporations generally must be reported on Form 1099‐MISC. 

     

Medical and health care payments reported in box 6.  Fish purchases for cash reported in box 7.  Attorneys' fees reported in box 7.  Gross proceeds paid to an attorney reported in box 14.  Substitute payments in lieu of dividends or tax‐exempt interest reported in box 8.  Payments by a federal executive agency for services (vendors) reported in box 7. 

For additional information please view the IRS Instructions for Form 1099‐MISC here:   http://www.irs.gov/instructions/i1099msc/ar02.html#d0e924 

*This information should be used as a guideline.  Specific questions regarding this “Biz Facts”  should be directed to a Business by Design, Inc. tax professional.   

 

4918 Lincoln Dr.

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Edina, MN 55436 p | 952.392.1200 f | 952.392.1201

Electronic Payment Authorization Form This is your agreement to engage in Business By Design’s services and consent to an Electronic Payment Authorization for said services provided by Business By Design.

Here’s how the Electronic Payment Authorization will work for you: 

You provide Business By Design with the method of payment for services. (See detail below)



Business By Design will prepare your 1099 Forms and/or services to completion.



Once complete, your 1099 Forms our billing will be reviewed with you by one of our representatives.

PAYMENT APPROVAL INFORMATION: Business By Design will not process any payments without your confirmation. I _________________________________(client name) authorize Business By Design to debit my account in the amount approved for Form 1099 preparation services. All payments will need to be approved and cleared to Business By Design prior to the filing of your Form 1099’s to all Federal and State agencies.

CHECKING/SAVINGS ACCOUNT

CREDIT CARD/DEBIT CARD

Bank Name_______________________________

 Visa

Account Number__________________________________

Cardholder Name____________________________

Bank Routing #____________________________

Exp/Date __________ CCV (# on back) ___________

Bank City/State ___________________________

Billing Address_______________________________

If you are unsure of your account’s routing number, please attach a copy of a void check with this form.

City, State, Zip_______________________________

Account Type:  Checking

Phone#_____________________________________

 Savings

MasterCard

American Express

Account Number_____________________________

SIGNATURE____________________________________________DATE__________________ By signing this authorization I agree to have Business By Design debit my bank account/credit card for the above-mentioned services. If this debit does not take place for any reason, I agree to pay Business By Design in an alternative method and pay any fees associated with a declined payment. I agree to notify Business By Design in writing of any changes in my account information or termination of this authorization 15 days prior to the next due date of the charges. I understand that cancellations must be made in writing and I will not dispute merchant billing, so long as the amount corresponds to the terms indicated in this contract.

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Prior to completing this form please review the Biz Fact on Form 1099 Processing and IRS Publication 1779 on Independent Contractors.

myBBD 1099 Request Form This is a fill in form. Please type your responses before printing form. Your Name: Company Name(Will Appear on 1099 as the Payor): Who is getting the 1099: Name(First, Last) or Business Name Address Amount Payee was Paid in 2015 What is the payment for? (services, rent, interest, ect)

SS Number or Tax ID City State Zip Code

Name(First, Last) or Business Name Address Amount Payee was Paid in 2015 What is the payment for? (services, rent, interest, ect)

SS Number or Tax ID City State Zip Code

Name(First, Last) or Business Name Address Amount Payee was Paid in 2015 What is the payment for? (services, rent, interest, ect)

SS Number or Tax ID City State Zip Code

Name(First, Last) or Business Name Address Amount Payee was Paid in 2015 What is the payment for? (services, rent, interest, ect)

SS Number or Tax ID City State Zip Code

Name(First, Last) or Business Name Address Amount Payee was Paid in 2015 What is the payment for? (services, rent, interest, ect)

SS Number or Tax ID City State Zip Code

Name(First, Last) or Business Name Address Amount Payee was Paid in 2015 What is the payment for? (services, rent, interest, ect)

SS Number or Tax ID City State Zip Code

Name(First, Last) or Business Name Address Amount Payee was Paid in 2015 What is the payment for? (services, rent, interest, ect)

SS Number or Tax ID City State Zip Code

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MYBBD HOW TO . . . 

Issue #

 

 

 

Using Secure Exchange FEATURING:  

 

STEP BY STEP INSTRUCTIONS FOR UPLOADING YOUR FILES TO BBD. 

 

 

IN THIS ISSUE 

 

   

Steps to Upload a file to BBD by Paul Miller 

st

1  – From Left menu, click on “File  Exchange”  nd

2  – Click “Secure Exchange – Upload  Documents Here” 

3rd – From menu bar, click “Upload” 

4th – Click “Add Files” or just drag files here.  5th – IMPORTANT:  Must click “Start Upload” 

Now close the upload box, and verify your documents are in your folder.  That is it!