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Saphire605
January 30, 2019
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1099 for Tow Company and Salt Provider?

  • January 30, 2019
  • 1 reply
  • 0 views

I have two quick questions.  

 

1.  We purchase bulk salt  from a sole proprietor.  We use the salt for snow services that we provide to other businesses.  Should the salt provider get a 1099?

 

2.   The other is a tow company.  We use them every time one of our vehicles breaks down.  Should they get a 1099?  They are also a sole proprietor.

 

Thank you!

Best answer by qbteachmt

@196025

 

Please Lear from the input here.

 

The Rule is $600 or More. Not "more than." That's only for specific boxes. Each box has its own requirements.

 

@Saphire605

 

 

You don't report Products. You would report the tow service, unless you pay by credit card. The use of a Credit Card falls under the 1099-K rules, which means the card company will report those amounts.

1 reply

A
Anonymous
January 30, 2019

Hello, Saphire605.

 

A 1099-MISC is the form any business sends anyone they pay to do a service who isn’t an employee. If you paid anyone more than $600 who isn’t an employee, you probably have to send out this form.

 

To learn more about setting up 1099, please refer to this article: https://quickbooks.intuit.com/community/Employees-and-payroll-taxes/1099-E-File-QuickBooks-Desktop-setup-troubleshooting-amp-FAQs/m-p/209388.

 

Please let us know if you have further questions. We’ll be happy to help anytime.

qbteachmt
qbteachmtAnswer
January 30, 2019

@196025

 

Please Lear from the input here.

 

The Rule is $600 or More. Not "more than." That's only for specific boxes. Each box has its own requirements.

 

@Saphire605

 

 

You don't report Products. You would report the tow service, unless you pay by credit card. The use of a Credit Card falls under the 1099-K rules, which means the card company will report those amounts.

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