How a bookkeeping firm collects W-9s and payee data before 1099-NEC season hits January

If you have determined a person is an independent contractor, the IRS says the first step is to have them complete Form W-9 so you have the correct name and TIN. Keep the W-9 for four years. (Forms and associated taxes for independent contractors)

About Form W-9 is the IRS page for the current request for taxpayer identification number and certification. Use that page for the current PDF, not a copy you saved in 2019. (About Form W-9)

• No W-9, no first payment, unless the owner has accepted backup withholding in writing.
• One row per payee per client, with TIN type, entity type, and whether they are exempt.
• January is for amounts and corrections, not for discovering the plumber's legal name.

File Form 1099-NEC for each person you paid, in the course of your business, at least $2,000 in 2026 for services by someone who is not your employee (including parts and materials) or for payments to an attorney. For payments made before 2026 the threshold was $600. After 2026, see Pub. 1099 for the inflation adjusted amount. You also file Form 1099-NEC if you withheld federal income tax under backup withholding, regardless of the amount. (Instructions for Forms 1099-MISC and 1099-NEC, Am I required to file a Form 1099?)

Form 1099-NEC is due to the IRS and to the recipient by 31 January (next business day if that date is a Saturday, Sunday or legal holiday). Form 1099-MISC is due to recipients by 31 January, and to the IRS by 28 February on paper or 31 March electronically. If that payer files 10 or more information returns of any type in the calendar year, those returns must be filed electronically. Count per payer (the client EIN), not across every client your firm books. For tax year 2026 returns filed in 2027, the IRS says IRIS is the only electronic system for those information returns. FIRE's last production filing date is 19 November 2026. (Instructions for Forms 1099-MISC and 1099-NEC, Am I required to file a Form 1099?, FIRE system retirement)

Corporations are often exempt from Form 1099-NEC, with exceptions the instructions list (including attorneys). Do not guess from the trade name on the invoice. The W-9 federal tax classification is the source.

Pull it from the ledger, not from memory. In QuickBooks Online a vendor contact list plus an expenses by vendor report for the calendar year is enough to start. Mark each row: W-9 on file, TIN matches the name, employee or contractor, corporation or not, amount this year, form (1099-NEC, 1099-MISC, W-2, or none).

Run this list in June and again in November. January is for the amount column and for Email 3.

Send from the client, or from the firm if the engagement says you handle vendor setup. Put the client legal name in the signature so the payee knows who is paying them.

Backup withholding is an IRS rule, not a threat you invent. If you will withhold, the owner of the client business has to know before the next payment. Put that in the engagement or in a written note to the owner. Do not freelance it from the bookkeeper desk.

Send in early January to the client (your customer), not to every vendor. The client confirms the list. You file.

Client: North Side Remodeling LLC. Calendar year 2026. Close is monthly. You keep books in QuickBooks Online.

November: Sam Kim is at $2,400 and still has no W-9. Email 2 goes out. The owner of North Side is told backup withholding is on the table for the next check. January: Email 3 to North Side with the four remaining rows. Count North Side's information returns, not your firm's whole book. If North Side itself reaches 10, file that client electronically through IRIS. Confirm the current IRIS process before you transmit.

Download the 1099 vendor worksheet. One row per payee. Copy it per client per calendar year. Fill amounts from the ledger, TINs from the W-9, never from a check stub.

Copy the worksheet once per client per calendar year. Fill amounts from the ledger and TINs from the W-9. If a W-9 still will not arrive, tell the business owner before the next check, then use the tax season operator only to draft the named reminder your staff still have to send.