This article is relevant for: All of Melio's subscribers.
What is a 1099 contractor?
A 1099 contractor is anyone who works independently rather than for an employer. Independent contractors are often referred to as consultants, entrepreneurs, business owners, freelancers, or as self-employed individuals.
This can include: Software Developers, Graphic Designers, Videographers, Photographers, Bookkeepers, Accountants, Independent Consultants, Business Coaches, Digital Marketers, Professional Services. And many more…
Can I use Melio to pay them?
Yes! Freelancers and contractors are a vital part of growing your business. Melio is the perfect solution to pay them quickly and easily. Plus, you can pay them both domestically and internationally.
Choose the payment method you prefer - ACH bank transfer, credit card, or debit card. Then your contractors and freelancers choose how they’d like to receive the payment: via paper check or ACH bank transfer. They don’t even need a Melio account to accept it.
To comply with IRS regulations, by January 31st of every year, you must file a 1099 report. This report includes any independent contractor who received $600 or more from you in the previous year through cash or equivalent methods. Filing this report requires you to have a W-9 form from each one of them.
We recommend you secure a signed W-9 form from your freelancers and contractors before issuing their first payment. Follow this guide to request your vendor for a W-9 form in Melio. If you already have their W-9 form, add it to the vendor details and have it ready in time for the report.
Learn more about what you can pay with Melio.
NOTE:
Melio typically asks for one of the following for verification purposes; Trade License / Business Registration, Doing Business As (DBA) Registration, Previous Schedule C filing, Most recent sales tax filing, Business utility bill under sole proprietor or DBA name, Sole proprietor bank statement.