A new law is impacting New York State employers using 1099s. Here’s what you need to know:
The Freelance Isn’t Free Act will require employers to possess signed agreements for any contractor paid $800 or more. This total applies to a single service, or multiple services adding up to $800 over a 120-day period.
The signed agreement must be kept on file for six years and should spell out the work that will be performed, the pay for the work, and the payment date.
Payments to contractors must happen within the stated time frame of the contract or within 30 days of work being completed.
For guidance, call us at 631-368-3110.