What 1099 Forms does Mercury support?
Mercury currently supports 1099-NEC and 1099-MISC filings. Mercury also generates 1099-INTs for businesses who have earned interest.
How is Mercury’s 1099 Filing product different from the 1099-INT Mercury generates?
Mercury issues a 1099-INT if you’ve earned $10 or more in interest on your Mercury accounts. This form reports your interest income to the IRS and is provided automatically each year. You’ll use it when filing your taxes. In contrast, Mercury’s 1099 Filing product helps you create and file 1099-NEC and 1099-MISC forms for your business. These forms report payments you’ve made to others, such as contractors, freelancers, rents, or royalties.
What is a 1099-NEC or 1099-MISC Form?
- 1099-NEC refers to an IRS tax form used to report payments of $600 or more made to nonemployees for services. This typically applies to freelancers, independent contractors, sole proprietors, and other service providers. If your business pays someone who is not on payroll, you may be required to file a 1099-NEC.
- 1099-MISC refers to an IRS tax form used to report a variety of payments that don’t fall under wages, salaries, or nonemployee compensation. Businesses must issue a 1099-MISC when they make certain types of payments, such as rent, royalties, or prizes, above IRS reporting thresholds.
Does Mercury handle state filings?
Yes. We help you file 1099-NEC and 1099-MISC forms with the IRS and all 50 states. We also support 1099 corrections.
What information do customers need to file a 1099?
A W-9 and the reportable total you paid the recipient during the tax year.
How does Mercury determine who appears on the “Add a 1099 Recipient” page?
Mercury includes all Recipients and ACH/Wire Pull counterparties in this step.
How does Mercury calculate 1099 reportable payments?
Mercury includes the following based on IRS guidance for 1099 reportable transactions. If you need to exclude certain transactions from this list, you can do so by Adding a 1099 Recipient, selecting them, and clicking “Edit Filing”.
- Payments made to a Recipient (ACH, Check, Wire, Intl. Wire)
- ACH Pulls
- Wire Pulls
Mercury does not include the following as they are not reportable on a 1099-NEC or 1099-MISC. If you believe a transaction is missing, you can manually add a transaction in the “Edit Filing” page.
- Card payments
- Reimbursements
- Transfers to a linked account
Can I add a team member to file 1099s?
Yes, when managing roles and permissions, assign the Accountant role or a Custom User role with the Accounting permission to let a team member manage and file 1099s for the company. Custom Users with the Accounting permission will only see transactions from the bank accounts they have access to, so be sure to grant access to any accounts with 1099 reportable transactions.
What if a customer made a payment outside of Mercury?
You can manually add external payments by adding a 1099 Recipient and clicking “Edit Filing” in the bottom menu. From there, you can open each recipient’s filing profile and add new external transactions.
What if a customer paid a recipient outside of Mercury?
- You can add a new Recipient from the Recipients page, or by clicking “Create Recipient” from the “Add Recipient” menu
- Navigate to Payments > Taxes > Get Started and select them as a 1099 recipient
- Once you have selected your 1099 recipients and completed the initial workflow, you will see an Edit filing button.
- From there, you can open each recipient’s filing profile and add new external transactions.
Can a user file 1099s now and the rest later?
Absolutely. File in multiple batches; each submission is processed and billed separately.
Can a user file for a counterparty?
Yes, all counterparties (entities paid via ACH Pull) will appear in the “Add a 1099 Recipient” step when Getting Started with 1099 Filing. Simply select the counterparty you would like to file for and proceed to the next step.
What’s the difference between a 1099 Recipient, a Recipient, and a Counterparty?
Recipients are anyone a customer has paid through Mercury, while Counterparties are those paid via ACH Pull. For tax purposes, these are grouped into 1099 Recipients, which are filing profiles used specifically for 1099 forms. Each 1099 Recipient must have a unique Name/TIN combination, and if duplicates exist, customers can combine filing profiles to ensure their filings remain accurate.
Does Mercury support 1099 Withholdings?
No, Mercury does not support any Federal or State backup withholding reporting. If you have backup withholdings you must file these outside of Mercury.
Why does my State Filing status stay on “Submitted” instead of changing to “Accepted”?
Only states that participate in the IRS CF/SF (Combined Federal/State Filing) program send us an electronic Accepted status. If your recipient’s state does not participate in CF/SF, Submitted is the final status we can show in Mercury. For more details about the filing, please contact your state tax agency directly.
Does Mercury resolve IRS notices?
Mercury does not resolve IRS notices; you’re responsible for the accuracy of the information provided.
How does pricing work?
- Customers can download W9 and Payment information for free from the Recipients page. Advanced 1099 capabilities such as Filing 1099s with the IRS and States are available for free as part of our paid Mercury Plus and Mercury Pro plans (learn more about pricing here) or for a flat fee of $5 per 1099 Form for non-subscribers. We do not charge any additional fees for filing a 1099 Correction.
- Non-subscribers will see a checkout page in order to complete filing. Fees are debited from their Mercury account after submission
For specific guidance on your tax filing obligations, please consult with a qualified tax professional. Mercury does not provide tax advice. Tax regulations can be complex and vary based on individual circumstances, so it's important to seek personalized advice from an expert who can assess your unique situation.