Have you ever looked at the stack of 1099’s you send out to your contractors and wondered, “are these all going to the right person? Do these people even exist? How do I make sure that the information I have on these 1099’s is right? What will happen if I get audited?”
That’s a lot of questions – and a lot of possible answers! To start with the basics: What is a 1099?
The IRS 1099-MISC is a form used by the IRS for reporting taxable income that wasn’t withheld. In other words: I did work for your company as a non-employee. Your company pays me 3,000 for that work and is required to send me a 1099 form so that I can report the income to the IRS. Most contractors and freelancers hate these forms because it means that they owe money to the IRS at the end of the year (or quarter). Employers often like doing this because they don’t have to run the expense through payroll and add the contractor as an employee – just send them a check and at the end o the year, send them a 1099. But what if the information the employer has is wrong?
With Martin Data’s ID Validator, we’re able to verify the information provided to employers by their contractors. We take all of the information you have about your contractors, run it against a credit header database, and give you verification flags on each of the fields. Is the last name wrong? Is their address mis-keyed? These are all things that an employer must know!
Our ID Validator will give you the peace of mind that the 1099’s your issuing are not simply going out into the void. They’re going to a real person with the correct information. No more will you have to worry about the correctness of the 1099’s you issue.