3 Ways to Document 1099 Freelance Employees

October 24, 2017

Freelance employees offer your company a number of unique benefits, including the ability to complete small, specific projects with more agility than your full-time employees, without needing to pay for full-time employee benefits.

If your business is considering hiring freelance employees, there are several areas you should be aware of. (Of course, you should always consult your CPA or insurance consultant about further specifics below.)

Here are 3 ways to document your 1099 freelance employees.

Prepare for taxes

Start by having your sub-contractor complete the most recent version of the W-9 before moving forward with any work. (You don’t want to have to worry about this come tax season.)

Then, by January, you’ll need to provide any freelance employees whom you paid over $600 in the calendar year with a 1099-MISC form (link to: ). By January 31, you’ll need to submit the 1099-MISC form to your freelance employee; and by February 28, you’ll need to submit the form to the IRS.

Keep track of documents

When you have had multiple sub-contractors and multiple projects going on at once, it can be easy to mix up documentation. However, clearly documenting and filing any information from your freelancers - including contracts and any tax documentation, invoices, and proof of payment - will save you headaches later on.

Invoices, specifically, are especially important, as they, of course, serve as your official records for payments made.

Add freelancers to payroll

Depending on how often your sub-contractors do work for your company, it may alleviate day-to-day billing work to simply add them to your payroll.

Consider increasing simplicity by letting a payroll company do the hard work for you and managing your payments to employees.


Have more questions about your 1099 freelance employees? Contact us at get-benefits today to learn more.

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3 Ways to Document 1099 Freelance Employees

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