Contractor Setup & Payments: W-9, SOW, 1099-NEC & AP Controls | Part 4

The contractor track lives entirely in Accounts Payable — not payroll. Every control in this video is designed to keep it there, because once contractor payments drift into payroll systems or accounts, the legal integrity of the contractor relationship starts to collapse.
Part 4 covers everything from contractor engagement to closeout: the three documents required before work begins (Services Agreement, Statement of Work, and Form W-9), the six controls governing every payment, the 1099-NEC filing rules and January 31 deadline, IRS TIN matching, and the formal closeout process — including why a dormant but technically active contract creates ongoing risk.
We explain exactly what happens when a W-9 isn't collected before the first payment — and why that's a 24% backup withholding liability that runs retroactively.

📚 Part of the PNJ Group Business Cycle Advisory Training series.
◀ Previous: Part 3 — Employee Onboarding
▶ Next: Part 5 — Recurring Payroll Operations

Tags:
Form W-9, 1099-NEC filing, independent contractor payments, contractor services agreement, statement of work, AP accounts payable, backup withholding, TIN matching, contractor closeout, 1099 deadline January 31, contractor compliance, IRS 1099-NEC, nonemployee compensation, contractor invoice approval, payroll compliance training, business cycle advisory, accounting training, contractor management, SOW deliverables, CP2100 notice

Видео Contractor Setup & Payments: W-9, SOW, 1099-NEC & AP Controls | Part 4 канала Ledger & Logic