finance-1099-prep

> **Templates and analytical tools only - not personalized financial, tax, accounting, or legal advice.** 1099 issuance is downstream of **worker-classification**. Misclassifying an employee as a 1099 contractor creates back-payroll-tax + penalties + interest + state UI / WC exposure that often exceeds six figures. Run the worker-classification gate (IRS 20-factor + state ABC test) BEFORE issuing any 1099. Review with a qualified CPA / EA / tax attorney before filing. # Finance - 1099 Prep Vendor / contractor 1099 preparation workflow. Covers W-9 collection, classification gate, 1099-NEC vs 1099-MISC vs 1099-K selection, TIN matching, and backup-withholding rules. ## Required inputs - **Filing year** `{filing_year}` - **Jurisdiction** (US - federal + any state with separate 1099 requirements like CA, MA) - **Vendor list** - for each vendor paid in the year: - Legal name + DBA - Address - TIN (SSN or EIN) - Tax classification (sole prop, single-member LLC, partnership, C-corp, S-corp, other) - Total payments in the year - Payment method (check / bank ACH / credit card / PayPal / Venmo / Stripe / Zelle) - Nature of work performed - Whether worker has been onsite / supervised / using payer-supplied tools (classification factors) ## Worker-classification gate - RUN FIRST > ⚠️ **Stop. Before issuing any 1099, run the worker-classification gate.** Misclassification is the highest-cost SMB tax error. ### Gate 1 - IRS Common-Law / 20-Factor test Three control ...