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importance of 1099 vendors.

Former Member
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HI sap guru's

could any one pls clarify the diff b/w vendor and 1099 vendors. is there any specific reasons toser vendor as a 1099 vendor. pls give some real time examples.

thanks in advance.

regards,

siva

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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Hi Siva Reddy,

A vendor is an entity is business who supplies you goods and services. Example- Raw material supplier for your company.

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According to regulations, any independent contractors that you paid more than $600 in the prior fiscal year be issued an IRS Form 1099 in US. Independent contractors (ICs) are simply people who are in business for themselves. They earn their livelihoods from their own independent businesses instead of depending upon an employer to earn a living. I

Example- Consultants, freelancers, the self-employed and even entrepreneurs and business owners.

In othe rwords you can say that any vendor to whom an agency must report payment for goods or services to the Internal Revenue Service (IRS) are 1099 venodrs.

Hope this solves ur query. please assign points and close the thread.

Rgds

Manish

Answers (1)

Answers (1)

sridevi_p
Active Contributor
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Hi,

http://www.sap-img.com/financial/1099-misc.htm

Regards,

sridevi

pls. assign points, if useful