If you paid your vendor an amount that meets or exceeds the IRS reporting threshold, you must collect W-9 forms and then file a 1099 form by January 31st of every year*. For the 2025 tax year, the threshold is $600, and for the 2026 tax year, it will be $2,000.
*Note: Consult the IRS website for the most current filing deadlines and specific requirements.
The 1099 form helps the IRS track payments made to non-employees like freelancers, consultants, and independent vendors who aren't full-time employees.
You'll need to collect a W-9 form from each vendor you've paid. If you made payments to vendors in an amount that meets or exceeds the IRS reporting threshold during the previous year outside of Gusto Bill Pay (for the 2025 tax year, the threshold is $600, and for the 2026 tax year, it will be $2,000), you will also need their W-9 form when you e-file your 1099.
You can do this by following these steps:
1 - In your Gusto Bill Pay account, create a bill for the vendor you paid outside.
2 - Mark this bill as paid:
a. Open the Bills tab and select the bill you created.
b. In the Bill details window, select More.
c. Select Mark as paid in the actions menu.
3 - Request the W-9 form from the vendor through Gusto Bill Pay, or upload the vendor's W-9 form if you already have it.
If you have paid a 1099 vendor less than the IRS reporting threshold through Gusto Bill Pay (for the 2025 tax year, the threshold is $600, and for the 2026 tax year, it will be $2,000), but also paid them an additional amount outside of Gusto Bill Pay for a combined total that meets or exceeds the threshold, the following steps are also applicable.
Need to collect W-9 forms from multiple vendors? This guide shows you how to efficiently request them from multiple vendors at once.