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ninsights
October 13, 2023
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Paying an Independent Person Sales Commission - 1099 Question

  • October 13, 2023
  • 1 reply
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A Texas retail company is an LLC. They would like to contract an independent person (not an employee) to run a sales event in January 2024. They would like to pay the independent person a commission on sales. That commission would be the only type of compensation for running this event.

Question: If that commission exceeds $600 during the calendar year, does the company need to send a 1099 to the independent person and if so, which 1099 form?

Thank you for any assistance provided.

Best answer by JessT

Welcome to the QuickBooks Community, ninsights!

 

If a contractor's pay reaches $600 in a given year, it is indeed necessary to provide them with a 1099 form. However, I'm unable to determine which specific 1099 form you should use. I recommend referring to the guidelines provided by the IRS or seeking guidance from your accountant for further assistance.

 

You can also refer to this article for the setup in QuickBooks: Set up contractors and track them for 1099s.

 

Feel free to go back to this thread if you have other questions in mind. Take care and have good one!

1 reply

JessT
JessTAnswer
October 13, 2023

Welcome to the QuickBooks Community, ninsights!

 

If a contractor's pay reaches $600 in a given year, it is indeed necessary to provide them with a 1099 form. However, I'm unable to determine which specific 1099 form you should use. I recommend referring to the guidelines provided by the IRS or seeking guidance from your accountant for further assistance.

 

You can also refer to this article for the setup in QuickBooks: Set up contractors and track them for 1099s.

 

Feel free to go back to this thread if you have other questions in mind. Take care and have good one!

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