Liquid will file 1099s for Client companies who are on Growth or Premium plans. In addition, Liquid will file 1099s for Client companies who are on legacy Concierge or Corporate plans.
Even if you are not on a plan that includes 1099 filing, you can still set up Liquid to make things easier at tax time.
- Invite all Independent Contractors/Vendors to Liquid. This ensures that you will automatically collect W9 data for all contractors.
- Create or upload all invoices to Liquid. Invoices can be created and sent by Vendors but they can also be uploaded by Clients.
- Use Liquid to pay all invoices. It's quick and seamless to make payments in Liquid. If for some reason you must make a payment outside of Liquid, ensure that the Liquid has been added to Liquid and press the button on the invoice to Mark as Paid Outside of Liquid. This will ensure that all payments are in Liquid at tax time.
- Download 1099 data. Using the Reports section of Liquid, download the 1099 data at the end of year to review the data for filing 1099s.
You can then take the 1099 data file to your accountant or to your preferred tax preparer software to file and distribute 1099s.