I owe a small contracting business, we employee some independent contractors to do a lot of the electrical and plumbing work while my team handles the majority of the construction. I am struggling to determine when a 1099 needs to be issued to a contractor and how much I am supposed to issue this for.
Is it just purely the total dollar amount that was paid to them? Is it only the dollar amount that was paid for labor and not for materials? Is it both but filed in 2 separate boxes? I had an employee who used the company credit card for personal use and then upon being accused of using it, left and will not contact me. Can I put those charges as personal use and file them on his 1099? Or make him provide receipts for them instead of taking the loss directly?
Thanks in advance for any and all help! Even links to the correct IRS publications are helpful!