1099 Prep for Denver Trades
Every January, trades owners chase W-9s from subs who finished in June and changed phones in September. The fix is a habit, not a heroic January: collect the W-9 before the first check, track payments all year, file on time without drama.
Why 1099 season goes wrong
Painting crews, cleaning subs, flooring installers — trades run on 1099 labor, and the IRS knows it. Forms are due January 31, penalties stack per form, and the information you need (legal name, EIN or SSN, address) is easiest to get the week a sub starts and nearly impossible the January after they've moved on.
The system that makes it boring
- W-9 collected before the first payment — built into onboarding, tracked in your books
- Payments to each sub tallied all year through A/P and monthly bookkeeping
- Thresholds monitored — you know who's getting a form before December
- Forms prepared, filed with the IRS, and delivered to your subs by the deadline
- Colorado's filing layer handled alongside the federal forms
One honest warning
1099 prep is paperwork; worker classification is the minefield underneath it. If a "sub" works your schedule with your equipment, that's a conversation for you, us, and your CPA before an auditor makes it one — see payroll support.
Related: Payroll Support · Accounts Payable · Monthly Bookkeeping
FAQ
1099 Prep — common questions
When are 1099s due?
January 31 — to your subs and to the IRS. Penalties accrue per form and grow the later you file, which is why the W-9-first habit matters more than January effort.
Which subs get a 1099?
Generally, unincorporated subs paid $600 or more in the year for services. We track payments all year so the December list is already built — no reconstruction required.
A sub won't give me a W-9. Now what?
There's a process — documented requests and, if needed, backup withholding. Better: make the W-9 a condition of the first check. We build that into your onboarding.
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