Compensation of $600 USD or more within a calendar/tax year that is paid to non-employees must be reported to the Internal Revenue Service (IRS).
Does Shortlist file 1099s for our freelancers?
Yes, for Shortlist Pay customers who opt in to our filing service. In early November each year, we share an onboarding workflow to guide you through each stage of the process, to include indicating your participation.
What are the stages of the process?
Once you have opted in:
In mid-November, we request your freelancers to review and update as needed the Tax Information in their Shortlist profile.
In early December and mid- to late December, we send an additional reminder and a final notice.
In January, we aggregate the filing data and prepare a preview file for your review and approval, addressing any gaps or discrepancies as needed.
No later than January 31, we generate the final data set and complete the filings to the IRS in bulk.
Through April 15 (and likely beyond), we support you and your freelancers with any corrected filings that may be required.
What if the freelancer has completed a W-9 in their Shortlist profile? Do they still need to enter/update the Tax Information section of their profile?
Yes! We source the filing information from data fields in their Tax Information rather than parsing PDF documents.
How much does 1099 filing cost?
For tax year 2021, the initial filing is free of charge! While we work with you and your freelancers to collect a complete and accurate set of filing data, some corrections are inevitable, at the cost of $20.00 USD per filing.
What type of 1099 filing do you submit?
We file Form 1099-NEC for all payments.
Which payments are included in 1099 filings?
We file for the following payments:
Earned by freelancers who file taxes in the United States (note that the freelancer may reside abroad)
Invoices are in the Paid status by December 31, 2021
The sum of the freelancers’ invoices is $600 USD or more
Can you file a 1099 for payments made to freelancers outside of Shortlist?
Shortlist invoices for which you processed the associated payments on your own are included in our filing by default.
For an additional fee of $200 per hour, we can also prepare 1099 filings for payments made to freelancers in your directory which do not exist as Shortlist invoices.
During the onboarding workflow, you’ll have an opportunity to indicate that you have additional data, in which case we will reach out to preview the payments volume and provide an estimate for your review.
When are 1099s filed?
No later than January 31 of each year for the previous tax year.
How are 1099s filed?
We e-file with the IRS through our third-party partner, Tax1099.com.
How do our freelancers receive a copy?
At the time of filing, an email is sent from Tax1099.com to the freelancer's email address associated with their Shortlist profile containing instructions to access and download their electronic copy.
Do we receive a copy?
After filings are completed, we will upload to your customer profile in Shortlist a bulk PDF of all filed copies. Please anticipate this to occur no later than the first week of February.
How can we contact you for additional information?
Please email the Shortlist Payments team at email@example.com, and we’ll be happy to assist you.
(Freelancers may reach us via the Support button in Shortlist or by sending an email to firstname.lastname@example.org.)