One Savvy Coach

🚨 1099-NEC NOTICE FOR BUSINESS OWNERS

If you pay contractors in your business, this is for you 👇🏽

✔️ STEP 1: ALWAYS collect a W-9 FIRST
Before you send a single payment, request a completed Form W-9.
This tells you:
• Who you’re paying (legal name)
• Tax ID (SSN or EIN)
• Their business type (this determines if a 1099 is required!)

💰 STEP 2: Know the REAL threshold
If you pay a contractor $600 or more during the year, you are generally required to issue a 1099-NEC.
🚫 Not $2,000
🚫 Not “whenever you feel like it”
✔️ $600 is the rule

📄 WHEN you MUST issue a 1099-NEC:
• Payments for SERVICES (not products)
• To individuals, sole proprietors, or partnerships
• To LLCs that are NOT taxed as an S Corp or C Corp
• Total payments = $600+

🚫 WHEN you typically do NOT issue a 1099-NEC:
• Corporations (S Corps & C Corps)
• When you’re buying products only
• Payments made via credit card or third-party apps (those are reported separately)

💡 PRO TIP:
Don’t assume — VERIFY.
The W-9 will tell you exactly what to do. That one form can save you penalties later.

⏰ DEADLINE REMINDER:
1099-NECs must be sent to recipients AND filed by January 31st

💼 Bottom line:
Collect your W-9s early, track your payments, and don’t wait until tax season to clean it up.

Because the IRS doesn’t accept “I didn’t know” as an excuse.

Georgia lawmakers passed a bill that would eliminate pennies from cash transactions, rounding totals to the nearest nickel if signed by Governor Brian Kemp.

📸- goodfreephotos.com

If I could lend one piece of advice for these times we're living in...
🗣️INSURE YOUR FAMILY MEMBERS