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Old 03-25-2015, 04:01 PM
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Question Is Advertising considered a service on a 1099

I am getting ready to file my 1099's and I used to just submit ones for independent contractors. Now I see I need to file one for health insurance payments and the irs says "service including parts and supplies". I understand, I think, I don't need to send 1099's to suppliers for my campground, but I wondered if Advertising would be considered a service and I need to send a 1099 for them. Any thoughts?



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Old 03-25-2015, 07:30 PM
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Originally Posted by mch2464 View Post
I am getting ready to file my 1099's and I used to just submit ones for independent contractors. Now I see I need to file one for health insurance payments and the irs says "service including parts and supplies". I understand, I think, I don't need to send 1099's to suppliers for my campground, but I wondered if Advertising would be considered a service and I need to send a 1099 for them. Any thoughts?
it depends; when your business pays for advertising, the irs requires filing a Form 1099 in only a few specific instances. In most cases you will only need to report advertising as an expense on your business tax return.
If you pay any individual, I mean a contractor, more than $600 during the tax year you are required to issue that person a 1099-MISC by Jan. 31 of the following year and to furnish a copy of the form to the IRS by Feb. 28 or mar 31 for efile. If the advertising vendor is a corporation, you won't need to issue a 1099-MISC.
If you hire an outside artist to design your advertisement, payments to the individual over $600 would require a 1099-MISC. If you hire and pay an individual or partnership as an advertising consultant or contractor who pays for ad space and/or artwork on your company's behalf, you would need to issue a 1099-MISC for all payments made, even if the money was ultimately passed to the newspaper or another individual,



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Old 03-28-2015, 03:14 PM
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re: 1099 for Health Insurance

Thank you for your response. That means that my last question is, we get our health insurance through Wellmark and make the payments to them. Do I need to send them a 1099? If so, I haven't yet and what happens since I am late?



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Old 03-28-2015, 03:23 PM
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Originally Posted by mch2464 View Post
Thank you for your response. That means that my last question is, we get our health insurance through Wellmark and make the payments to them. Do I need to send them a 1099? If so, I haven't yet and what happens since I am late?
Thank you for your response. That means that my last question is, we get our health insurance through Wellmark and make the payments to them. Do I need to send them a 1099?===>no. The form is for payment for services.
Paying a premium is not a service; 1099's are issued to people who perform services ;also,
if they are incorporated, a 1099 does not have to be issued .As you are paying insurance premiums and although it may seem like it, it is not a service
you are actually paying for protection that may or may not ever happen or be needed
it is merely a expense of your business, providing health care coverage for yopu/ your employees.

If so, I haven't yet and what happens since I am late?====>>>as above.



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Old 03-28-2015, 05:44 PM
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Whew!

Thanks so much. Now instead of worrying about having to send out lots of 1099's, I end up not having to send out any. I really appreciate it.



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Old 03-28-2015, 05:45 PM
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Whew!

Thanks so much. Now instead of worrying about having to send out lots of 1099's, I end up not having to send out any. I really appreciate it. I really appreciate you sending a response so quickly. I am up to my eyeballs in other stuff and didn't need this on top of everything else.



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