What Is the Maximum an Employee Can Make Before Filing a 1099?

An employee can only make so much money before filing a 1099. Learn what the maximum amount of money is that an employee can make before filing a 1099 with help from a business consultant and marketing expert in this free video clip.

Part of the Video Series: Small Business FAQs

Video Transcript

Hi I'm Isaac Rodriguez, I'm a business consultant. I'm going to talk to you a little bit about how much an employee, the maximum an employee can make before filing a 1099. A 1099 form, generally, the maximum amount is $600 as per the form itself. Where the instructions for the form, and the guidelines, are on the back of this form. It's important to note that you contact your tax professionals in any question regarding employees or consultants. Because as the question was phrased the maximum an employee can make before filing a 1099 form. It is possible that the employee got a bonus that may be outside of the normal course of business. Or there was a commission that there was not taxes taken out and the individual, for one reason or another, wanted to be treated as a distribution that would have to be claimed at the 1099 form. And generally speaking, and each situation is unique, contact your tax professional so that you can be sure that you are treating your employees properly with respect to taxation in the United States. And so that's why I stress contacting your tax professional so that you can be sure what the maximums are and whether or not you even need to be filling out a 1099 form for an employee. Perhaps you maybe need to do something completely different. I'm Isaac Rodriguez and that's the maximum an employee can make before filling out a 1099 form.

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