Do Staffing Agencies Receive 1099s?


Staffing Agencies / Thursday, December 3rd, 2020

If you are new to keeping records for your company, it can be difficult to make sense of all the IRS forms you need to file. Here is a simple explanation of what information a 1099 contains and why some staffing agencies receive them while others do not.

What Is a 1099?

A 1099 is a form a business gives to contractors and vendors, stating how much the company paid for their services. It differs from a W-2 form in that employers do not withhold any earnings from contractors in the way they do regular employees. Thus, a company for which your staffing agency supplies workers would issue you a 1099 at the end of the year.

Which Agencies Receive Them?

According to https://www.wwspi.com/, businesses are only required to send 1099s to non-incorporated agencies they employ; they do not send them to incorporated ones. If your agency is an LLC, a sole proprietorship, or a limited partnership, then you will receive a 1099 form at the end of the year from any businesses that paid $600 or more for services you rendered.

In summary, only non-incorporated staffing agencies receive 1099s. If your company is incorporated, then the 1099 is one less piece of paperwork you have to worry about this tax season.