What to do if you made payments to a contractor outside of Melio?
If you paid an independent contractor $600 or more during the tax year, you must collect W-9 forms and then file a 1099 form by January 31st of every year*.
*Note: Consult the IRS website for the most current filing deadlines and specific requirements.
The 1099 form helps the IRS track payments made to non-employees like freelancers, consultants, and independent contractors who aren't full-time employees. You can now do your 1099 e-filing by syncing your Melio data with Tax1099*.
* Standard Tax1099 fees apply
Before filing a 1099 form, you'll need to collect a W-9 form from each contractor you've paid. If you made payments of $600 or more during the previous year outside of Melio, you will also need their W-9 form when you e-file your 1099 by syncing with Tax1099. You can do this by creating a bill for the vendor and requesting or uploading the W-9 form. To do this, please follow the steps below.
If you have paid a 1099 vendor less than $600 through Melio but also paid them an additional amount outside of Melio with a combined total of $600 or more, the following steps are also applicable.
1- Select Pay from the left sidebar.
2- In the main screen, select the Bills tab.
3- In the Bills tab, you can create a new bill by selecting either Create bill or + New payment.
This will lead you to the Bill details screen.
4- Now, you can manually enter the bill details for the payment you want to create.
5- Double-check that all the bill details are correct.
6- Select Save and close to save the bill you have created.
7—Once back in the Bills tab, find the bill you created and select the three-dot icon on the far right side of the bill listing.
8- Select Mark as paid from the drop-down menu.
9- Select the Vendors tab.
10- Find the Vendor in the Vendor’s list. Select the three-dot icon on the far right side of the vendor listing.
11- Select Edit vendor from the drop-down menu.
12- Under Vendor details, scroll down to the Tax info.
13- If it isn't already, make sure the vendor is marked as a 1099 contractor.
- If you need a W-9 from the vendor, select Request W-9 from vendor. Next, select the Send request button. Once done, select Save.
If you haven't yet added the vendor’s email address, you may need to enter it and select Send request again.
- If you already have the W-9 form, you can upload it by marking "Upload vendor W-9" and then selecting the "Upload file" box. Once you've done this, select Save.
Once you have the W-9 file, you can begin syncing with Tax1099. Please see the following guide for more information.