· Reviewed by Nimra Khalid
What is 1099 preparation?
1099 preparation is the year-end work of identifying every US vendor who must receive an information return, totaling what the business paid them, confirming names and tax IDs against W-9 forms and producing the forms for filing with the IRS and delivery to the contractor. Canada's T4A and the UK's CIS returns serve a similar purpose for contractor payments.
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1099 preparation: what we do and how it runs
1099 preparation is the year-end work of identifying every US vendor who must receive an information return, totaling what the business paid them, confirming names and tax IDs against W-9 forms and producing the forms for filing with the IRS and delivery to the contractor. Canada's T4A and the UK's CIS returns serve a similar purpose for contractor payments.
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What it is
1099 preparation is the year-end work of identifying every US vendor who must receive an information return, totaling what the business paid them, confirming names and tax IDs against W-9 forms and producing the forms for filing with the IRS and delivery to the contractor. Canada's T4A and the UK's CIS returns serve a similar purpose for contractor payments.
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What you get
Contractor payments compiled and matched to W-9s before January
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How it runs
Draft 1099-NEC and 1099-MISC forms ready for review; your firm or you files
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Discovery call
A 20-minute call to count your contractors, learn where payments are recorded, who files today and whether last year had gaps. We ask for the prior year's forms and the current vendor list.
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A named accountant, a backup and a team lead
Inside your own software, on a fixed close calendar, with a reply from a person within 1 business day. Call +1-657-777-0006 or start a quote.
Get a custom quote 06 / 06
Who it is for
Businesses paying many contractors
Home-care agencies, transport companies, construction firms, agencies and clinics pay dozens or hundreds of independent contractors a year. January becomes a scramble for W-9s and totals.
Owners who filed late or wrong before
You missed a contractor, sent a form with the wrong tax ID or filed after the deadline. You want the data compiled and checked during the year, not in the last week of January.
Accounting firms with 1099 clients
Your firm files 1099s for many clients and needs the compilation, W-9 matching and drafts done before your reviewer touches them.
What's included
- Vendor list reviewed for 1099-eligible and exempt vendors with reasons noted
- W-9 and W-8 forms collected and chased for vendors missing them
- TIN matching against IRS records where your tool or the IRS program allows
- Payments compiled by vendor, by form type and by box for the tax year
- Card and third-party network payments excluded per 1099-K rules
- Rent, legal, medical and other 1099-MISC categories separated from 1099-NEC
- Corrections to vendor records and coding made in your ledger, logged
- Draft 1099-NEC and 1099-MISC forms prepared in Track1099, Tax1099 or your ledger's 1099 module
- Reconciliation of 1099 totals to the general ledger and AP payments
- Filing-ready files and recipient copies ready for your firm or you to file
- Corrected form drafts prepared if a recipient disputes a figure
- Canadian T4A and UK CIS contractor data compiled on the same schedule
Deliverables and KPIs
| Deliverable | KPI we report | Cadence |
|---|---|---|
| Vendor eligibility review | Every vendor marked eligible or exempt with the reason | Quarterly |
| W-9 completeness | Missing tax forms chased; gaps listed by early December | Quarterly |
| Payment compilation | Totals by vendor and box reconciled to the ledger | Annually |
| Draft forms | Filing-ready drafts delivered by the second week of January | Annually |
| Reviewer package | Drafts, reconciliation and exception list handed to your firm or you | Annually |
| Corrections support | Corrected drafts prepared within 2 business days of a dispute | As needed |
KPIs are what we measure and report, agreed per engagement. Service-level commitments are set in your agreement.
How it works
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Discovery call
A 20-minute call to count your contractors, learn where payments are recorded, who files today and whether last year had gaps. We ask for the prior year's forms and the current vendor list.
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Vendor review and W-9 chase
A named specialist reviews the vendor master, flags eligible vendors, checks forms on file and chases the rest under your brand. This starts in the fall so January is not a chase.
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Compilation and reconciliation
After year-end, payments are compiled by vendor and box, excluded items removed, totals reconciled to the ledger and drafts prepared in your 1099 tool.
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Review and hand-off for filing
The team lead reviews the drafts under Two-Tier Review. Your firm or you reviews the package, approves and files with the IRS and delivers recipient copies. We do not sign or transmit returns.
Software we work in
How much does 1099 preparation cost?
1099 preparation is priced per form for standalone projects, with a minimum project fee, and is included in most accounts payable and vendor management engagements. Canadian T4A and UK CIS compilation are priced the same way. Pricing depends on volume and scope, so we send a custom quote within 1 business day.
What moves the quote
- Number of contractors and forms expected
- Share of vendors missing W-9s or with mismatched tax IDs
- Whether payments are already coded during the year or must be compiled from statements
- Number of entities filing and whether state filing data is also needed
Market benchmarks
| Market | Typical range | Source |
|---|---|---|
| US | Included within outsourced bookkeeping and AP plans of $150 to $1,600 per month, or quoted per form | indinero, RadCity, NerdWallet (2026) |
| US | All-inclusive offshore accounting staffing $8 to $35 per hour versus $40 to $75 per hour US-based | Madras, Acculink, Rose Talent (2026) |
| Canada | C$30 to C$90 per hour for freelance bookkeeping including T4A preparation | Canadian bookkeeping fee surveys (2026) |
| UK | £20 to £55 per hour for bookkeeping including CIS workings | UK provider pricing surveys (2026) |
Third-party ranges for orientation, not our prices.
Get a custom quote No setup fee. Month-to-month.
1099 preparation for your industry
Security and compliance
- Tax identification numbers stored in your ledger or 1099 tool, never in email or spreadsheets on our devices
- IRS section 7216 written consent obtained before any tax-return information is shared with our team by a firm
- MFA on every login, access logged, files deleted from our side after hand-off
Full control list on the security page and country rules on the compliance page. Certifications are listed only when held.
Frequently asked questions
How much do 1099 preparation services cost?
Pricing depends on volume and scope, and we send a custom quote within 1 business day. Standalone projects are quoted per form with a minimum; clients on our accounts payable or vendor management service have it included. As a market reference, all-inclusive offshore accounting staffing runs $8 to $35 per hour versus $40 to $75 per hour US-based (Madras, Acculink, Rose Talent, 2026).
Do you file the 1099s with the IRS?
No. We provide data compilation and draft forms that are filing-ready; your firm or you files. That keeps the signing and transmission with the party responsible for the return. The client approves and releases every payment; we never move money. If you use Track1099, Tax1099 or the 1099 module in QuickBooks Online, the drafts are prepared there so filing is a review and a click on your side.
Which vendors need a 1099?
In general, US individuals, sole proprietors, partnerships and LLCs taxed as such that you paid for services above the IRS threshold for the year receive a 1099-NEC. Rent, legal settlements and some other payments go on a 1099-MISC. Payments to corporations are mostly exempt, with exceptions such as attorneys. We apply the IRS instructions and list uncertain cases for your CPA; we do not give tax advice.
What is the deadline?
Form 1099-NEC is due to recipients and to the IRS by January 31. Our compilation is timed so drafts are with you by the second week of January, leaving time for review and corrections. Canadian T4A slips are due at the end of February, and UK CIS returns are monthly, so those run on their own calendar.
What if a contractor never returned a W-9?
We chase during the year, starting in the fall, and give you a list of gaps by early December. For vendors still missing a form at year-end, we prepare the draft with the information available and flag it. Your CPA advises on backup withholding and how to handle the missing tax ID; that is a tax decision, not ours.
Do you exclude payments made by card or PayPal?
Yes. Payments made by credit card, debit card or a third-party network are reported by the processor on Form 1099-K, not by you on a 1099-NEC. We separate them by payment method during compilation so contractors are not reported twice. That is one reason coding payment method during the year matters.
Can you handle Canadian T4A and UK CIS as well?
Yes, on the same model. For Canada we compile T4A data by contractor for the client's accountant to review and file; only registered EFILE transmitters file. For the UK we prepare CIS deduction workings and monthly return drafts; the client or their accountant submits to HMRC.
What happens if a contractor disputes the amount?
We pull the payment detail behind the total, reconcile it with the contractor's records and, if the figure is wrong, prepare a corrected draft within two business days. Your firm or you files the correction. Most disputes come down to timing differences between when a check was written and when it was cashed.
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