The below is not professional advice.
You're a contractor, freelancer, or consultant and plan on getting paid more than $600 by one particular client in a tax year. They'll need you (the payee) to send them a completed W-9 before they can send you a Form 1099-MISC (or NEC) form. You'll need that to report your income to the IRS.Nov 11, 2022
1) Collect a W-9 from the worker and issue the check to the named entity on the W-9. If that entity is anything other than a corporation (S-Corp or C-Corp, typically identifiable because the name ends in "Inc."), you probably have to issue a 1099-NEC next January.
There are a few exceptions (e.g. you always issue 1099s for legal services, you don't issue them for merchandise), but your CPA can review those for you.
2) Issue that person a 1099. Include the 1099 with their W9.
This article is great if mailing it in: https://remote.com/blog/what-is-a-1096-form#what-is-form-1096
This is the IRS article with info: https://www.irs.gov/
And here's a great video on 1096's https://www.youtube.com/watch?v=03dG3ixyHdI
