Lynx LedgersLyn Ledgers
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Day-to-day operations

Subcontractor payment (1099)

We pay your contractors with proper tax handling, so you don't have IRS headaches at year-end.

  • W-9 collection from contractors
  • Monthly/weekly payment
  • Recording of each payment
  • Automatic calculation of annual totals

When you hire people who are NOT employees (W-2), they're independent contractors (1099). You need to: pay correctly, collect W-9 before the first payment, track how much you paid in the year, issue 1099-NEC at year-end (over $600). Get it wrong = IRS penalty. We handle it all.

Who it's for

  • Contractors hiring painters, plumbers, etc.

    High volume of subs without control = ticking time bomb with the IRS. We fix it.

  • Companies using freelancers

    Designer, consultant, marketer — every freelancer >$600/year needs to receive a 1099.

  • Any business with 1099 contractors

    If it's not W-2, it's 1099. And 1099 without control becomes an easy fine.

What's included

  • W-9 collection from contractors
  • Monthly/weekly payment
  • Recording of each payment
  • Automatic calculation of annual totals
  • 1099-NEC issuance at year-end
  • Sending to contractors and the IRS

How it works

  1. 01

    You tell us who the contractor is

    Name, amount, frequency — we add to the system.

  2. 02

    We collect their W-9

    Mandatory document before the first payment — we ask directly, you don't get involved.

  3. 03

    We pay via the system

    ACH, check, or transfer — you choose the method, we execute.

  4. 04

    We log each payment

    Accumulates in the year per contractor — we know what each one received.

  5. 05

    January: we issue the 1099s

    To them and to the IRS — direct e-file, no paper, no headaches.

Common questions about this service

  • What if the contractor won't give me the W-9?

    We chase until we get it — without W-9, you're required to backup-withhold 24%. Easier to insist before.

  • Do you pay directly from my account?

    Yes, via ACH or checks we issue. You authorize each batch first.

Ready to outsource this?

Send a WhatsApp message and we'll organize your contractors before the next payment.