1099 Processing
1099 Processing refers to handling tax forms for independent contractors and freelancers. It's a crucial task where businesses must prepare and send IRS Form 1099s to contractors who were paid $600 or more during the tax year. Bookkeepers and accounting professionals manage this process by gathering contractor information, calculating payments, preparing forms, and ensuring timely submission to both contractors and the IRS. This is similar to payroll processing, but specifically for non-employee workers. Other names for this work include "contractor tax reporting" or "1099-MISC preparation."
Examples in Resumes
Managed 1099 Processing for over 100 contractors annually
Streamlined 1099 preparation and filing procedures
Implemented digital 1099 Processing system reducing errors by 50%
Typical job title: "1099 Processing Specialists"
Also try searching for:
Where to Find 1099 Processing Specialists
Professional Organizations
Online Resources
Example Interview Questions
Senior Level Questions
Q: How do you handle complex 1099 situations with multiple state requirements?
Expected Answer: Should demonstrate knowledge of multi-state filing requirements, explain process for tracking state-specific thresholds, and discuss systems for managing different state deadlines and forms.
Q: How would you implement a 1099 processing system for a company with 500+ contractors?
Expected Answer: Should discuss project management approach, choosing appropriate software, establishing verification procedures, and creating efficient workflows for large-scale processing.
Mid Level Questions
Q: What information do you need to collect from contractors before processing 1099s?
Expected Answer: Should mention W-9 forms, tax ID numbers, correct legal names, addresses, and payment records. Should also discuss verification procedures and documentation storage.
Q: How do you ensure accuracy in 1099 reporting?
Expected Answer: Should explain verification processes, reconciliation with payment records, importance of maintaining current contractor information, and review procedures before submission.
Junior Level Questions
Q: What is the difference between a 1099-NEC and 1099-MISC?
Expected Answer: Should explain that 1099-NEC is for contractor payments while 1099-MISC is for other types of payments like rent or prizes, and know the basic filing thresholds.
Q: What are the deadlines for 1099 submission to contractors and the IRS?
Expected Answer: Should know that forms must be sent to contractors by January 31st and filed with the IRS by January 31st for 1099-NEC or February 28th for paper filing of other 1099 forms.
Experience Level Indicators
Junior (0-2 years)
- Basic understanding of 1099 forms and requirements
- Data entry and form preparation
- Filing and record keeping
- Using tax preparation software
Mid (2-5 years)
- Managing contractor documentation
- Multi-state filing experience
- Error resolution and correction procedures
- Year-end reconciliation process
Senior (5+ years)
- Process automation and system implementation
- Team training and supervision
- Complex compliance management
- Policy development and documentation
Red Flags to Watch For
- Unfamiliarity with basic tax filing deadlines
- No experience with tax preparation software
- Poor attention to detail in data entry
- Lack of understanding about contractor vs employee classification
