It’s one of the most common—and costly—oversights we see in creative businesses: missing the $600 threshold for 1099 reporting.
If you’ve paid an independent contractor, freelancer, or subcontractor more than $600 this year, the IRS expects a Form 1099‑NEC—no exceptions.
And while Studio Designer and other tools can help track payments, they won’t file forms or chase vendors for you. That’s your firm’s responsibility.
Modern design firms rely on flexible teams—remote contractors, freelance specialists, marketing vendors, and outsourced project managers. That flexibility fuels creativity and scalability, but it also creates compliance risk if payments aren’t tracked correctly.
1099 errors don’t just cause administrative headaches; they can trigger IRS penalties and strain vendor relationships right when you need them most.
Collect W‑9s from vendors before December
Waiting until January almost guarantees missing information—or unresponsive vendors.
Track payments by vendor throughout the year
Don’t rely on spreadsheets or memory. Use Studio Designer to record total payments per vendor and tag 1099‑eligible payees.
Verify contractor status
Just because someone invoices you doesn’t mean the IRS sees them as a contractor. Double‑check classifications to avoid payroll penalties.
Avoid last‑minute scrambles or fines
Filing late—or failing to file at all—can cost hundreds per vendor in penalties.
This applies especially to firms that hire:
Freelance interior designers or drafters
Project managers or site coordinators
Bookkeepers, consultants, or marketing vendors
Social media freelancers, stylists, or photographers
If they’re not on payroll and you’ve paid them over $600, they likely need a 1099‑NEC.
Getting 1099s right starts with organized data. The better your systems in Studio Designer, the easier it is to track payments, tag vendors, and stay compliant.
Explore more free tools, checklists, and guides built to make Studio Designer work for your business — including resources to help you prepare for year‑end.
Visit the Studio Designer Resource Hub
https://www.accountingfrontier.com/studio-designer-resources