A non employee paid for items utilized at an event and the amount is $400.00. Do we need this person to fill out a W-9 for our company records?


In such a case, provided that the individual is under an accountable plan, was reimbursed for the exact amount paid out, and has provided receipts for the expenses to be reimbursed, then you won't have to issue a 1099-MISC form. Further, the total is under the $600 threshold for reporting. Since you won't be reporting, collecting a W-9 is not necessary, but always advisable, especially if you anticipate doing any further business with the individual.

For definitions of accountable and non-accountable plans, see IRS Publication 463, page 30: https://www.irs.gov/pub/irs-pdf/p463.pdf.

Have more questions? Submit a request