Our company is having a Workmen's Comp Payroll Audit on Monday. The Auditor stated that he needed to see payments made to Independent Contractors (along with employee records) who were issued a 1099. He then said if the Independent Contractor (IC) is being paid in their company name they don't need a 1099 but if they are being paid in their personal name. They need a 1099.
Is this true? We have had two different contractors who have done our payroll this year and one was paid in their name and one was paid in their company name. Please help. I'm so confused!!
If they are incorporated, no 1099 needs to be issued. You are not required to issue 1099s to corporations.
Regular sole proprietorship companies need to be issued a 1099MISC if they are paid over $600 in a year.