--- title: "1099 Contractor Checklist for NJ Businesses | MCC Solutions" description: "W-9s, tracking payments, January filing and records to keep. A worked tracking example. Check IRS thresholds each year." url: "https://mcc-solutionsnj.com/bookkeeping/guides/1099-contractors-checklist-for-nj-businesses" --- Bookkeeping guide · Updated October 7, 2026 # 1099 contractors: a checklist for New Jersey businesses If you pay independent contractors, the paperwork starts before the first payment and ends in January. Here is a short checklist. By [Matthew Coleman](/about), MCC Solutions **Quick answer.** Ask every contractor for a completed Form W-9 before the first payment. It gives you their legal name, tax classification and taxpayer ID, which you need to file, so do not wait until January to collect it. Want this handled for you? Monthly bookkeeping, cleanup and year-end close for small businesses. Start with a free health check of your books. [Free health check](/bookkeeping/health-check)[Get a quote](/bookkeeping/#interest) **Related:** [Trial balance explained](/bookkeeping/guides/trial-balance-explained) · [Owner contribution or loan](/bookkeeping/guides/owner-equity-and-capital-contributions) · [Closing entries and retained earnings](/bookkeeping/guides/closing-entries-and-retained-earnings) **Free tools:** [Contractor vs employee cost](/bookkeeping/contractor-vs-employee-cost-calculator) · [How many sales do I need to break even?](/bookkeeping/break-even-calculator) [![Intuit ProAdvisor Gold tier badge](/img/credentials/intuit-proadvisor-gold.png)](https://proadvisor.intuit.com/app/accountant/search?searchId=matthew-coleman77)Gold tier in Intuit's ProAdvisor program. [See my Intuit listing](https://proadvisor.intuit.com/app/accountant/search?searchId=matthew-coleman77) ## Before you pay: collect a W-9 Ask every contractor for a completed Form W-9 before the first payment. It gives you their legal name, tax classification and taxpayer ID, which you need to file. Do not wait until January to ask. ## Is the worker really a contractor? Classification depends on the facts of the relationship, not on what you call it. New Jersey applies a strict test, so independent contractors generally need to be truly independent. If you control when, where and how the work is done, they may be an employee. Ask a tax professional or the Department of Labor if unsure. ## Track payments during the year Mark vendors as 1099 vendors in your accounting software and record payments to them in the right categories. Payments by credit card or payment app are reported by the processor, not by you, so know which payments you must report. ## Want us to handle it? We prepare your 1099-NEC forms for 2026 payments from the contractor list and W-9s you send, for businesses in any state. **Price:** $9 per form, $29 minimum per order. [Request 1099 preparation](/bookkeeping/1099-nec-filing-service#request) ## File in January Form 1099-NEC is generally due to the contractor and the IRS by January 31 for the prior year. The dollar amount at which you must file has been $600 and has changed under recent legislation, so check the IRS instructions for the year you are filing. Certain states also require filings. ## Keep the records Keep W-9s, invoices and proof of payment. They protect you if the classification is questioned later. ## Worked example with numbers A contractor is paid $750 in January and $400 in July, $1,150 total. Check the current reporting threshold with the IRS. Keep a running total by payee all year with the W-9, so in January you can file with the right name, address, taxpayer ID and amount. ## Mistakes that cost money No W-9. Late filing. Paying by credit card, which may be reported differently by the card processor; confirm current rules. ## Check your work In December, list every payee, their total and whether you have a W-9. ## Common questions **Do I issue a 1099 to a corporation?** Often not, with exceptions. Check the IRS instructions for your situation. **Can you prepare 1099s?** We track 1099 vendors in your books and prepare the data. We can also help with filing, as an add-on. This guide is general information, not tax, legal or accounting advice. Rules, fees and due dates change; check with the IRS, the NJ Division of Taxation or a licensed professional for your situation. Let us handle it [### Monthly bookkeeping Categorizing, reconciling and monthly reports, with cleanup, payroll and NJ filings available. Bookkeeping →](/bookkeeping/) [### Gusto and payroll software Payroll software for New Jersey small employers: what to set up, how payroll flows into your books, and the NJ filings that follow every payroll. Payroll →](/bookkeeping/software/gusto-payroll)[### QuickBooks Online Monthly bookkeeping, cleanup and reconciliation in QuickBooks Online for New Jersey small businesses. Your account stays in your name. QuickBooks →](/bookkeeping/software/quickbooks-online) More guides - [NJ LLC Annual Report: Due Date, Cost & How to File Online](/bookkeeping/guides/new-jersey-llc-annual-report) - [Chart of accounts for a small business: how to set one up](/bookkeeping/guides/chart-of-accounts-for-small-business) - [What business records to keep, and for how long](/bookkeeping/guides/how-long-to-keep-business-records) - [How to switch accounting software and keep your history](/bookkeeping/guides/how-to-switch-accounting-software) Free tool - [Bookkeeping health check](/bookkeeping/health-check) [All guides](/bookkeeping/guides) Reach small business owners, freelancers and bookkeepers who read this guide: [advertise here](/advertise#bookkeeping). Do it yourself ### Year-End Close and 1099 Kit Close the year cleanly, get 1099s out on time, and hand your accountant everything in one go. [See what's inside ($29)](/toolkits/year-end-close-and-1099-kit) [Free sample](/toolkits/year-end-close-and-1099-kit#free-starter)14-day full refund Free tool: [1099 deadline calculator](/bookkeeping/1099-deadline-calculator) Course: [Small Business Bookkeeping Basics](/courses/small-business-bookkeeping-basics) ($49) covers chart of accounts, reconciliations, the monthly close, payroll and 1099 basics for owners. It is training with a certificate of completion, not a credential. ## Rather have us keep the books? Ask for a quote. [Get a Quote](/bookkeeping/#interest)[Call (908) 444-6373](tel:+19084446373)