ÐÓ°É´«Ã½

Taxpayer Identification Number

The ÐÓ°É´«Ã½ must obtain a taxpayer identification number from workers who will be paid as independent contractors.

Failure to Provide Taxpayer Identification Number

If an independent contractor is unable or unwilling to provide a taxpayer identification number, the ÐÓ°É´«Ã½ must withhold 31% of the payment as backup withholding.

Form 1099-misc.

The ÐÓ°É´«Ã½ will file Form 1099-Misc, when required, for all independent contractors earning $600 or more per year.

Reimbursement of travel, gift and entertainment expenses to independent contractors

• Travel or Gift Expenses
  Under Internal Revenue Service rules, the ÐÓ°É´«Ã½ is not required to maintain detailed records of travel or gift expenses paid by a contractor, even if those expenses are reimbursed by the ÐÓ°É´«Ã½.
• Entertainment Expenses
  • Contractor adequately accounts to ÐÓ°É´«Ã½ for expenses. 
    The ÐÓ°É´«Ã½ must maintain records documenting each element of such expense.
  • Contractor does not account to ÐÓ°É´«Ã½ for expenses.
    The ÐÓ°É´«Ã½ may pay entertainment expenses as part of a contract amount. If the contractor is not required to document those expenses to the ÐÓ°É´«Ã½ in order to be paid for them, then the ÐÓ°É´«Ã½ does not need to keep detailed entertainment expense records.