Are we responsible for withholding when we issue a Form 1099-MISC?

October 25, 2002

Date:  Tue, 10 Sep 2002
From:  Lauren

I have a question you may be able to help clarify. If we have a non-employee who is paid with a 1099, are we responsible for withholding, or would we just supply the taxable income information?

Thank you.

Answer

Date:  Wed, 16 Oct 2002

Hello Lauren,

You just supply the information report, unless the service provider is a non-resident of the United States or is subject to backup withholding. Some states also require withholding when a service provider is providing services within the state but is a resident of another state. See your tax advisor about how the rules work in your state.

Good luck!
Mike Gray

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