What is Form 1099-NEC

1099-NEC

Form 1099-NEC is an old form (originally discontinued in 1982) that will separate the reporting of payments to non-employees by a company. It will be used to report any Non-Employee Compensation in lieu of the 1099-MISC form. The Form 1099-MISC will still be used for all other forms of compensation (ie – Fishing Proceeds, Rents, etc).

Who Uses Form 1099-NEC

All businesses must file a Form 1099-NEC for non-employee compensation paid, when:

  • It is made to someone who is not your employee
  • It is made for services in the process of conducting your trade or business.
  • The payments that were made to the Payee were $600 or more for the year.
  • It was made to an individual, partnership, or professional service (including law firms operating as corporations.)

You must also file Form 1099-NEC for anyone from whom you withheld federal income tax under backup withholding rules for any amount, even if it’s less than $600.

When Does Form 1099-NEC Need to be Filed

January 31st is the due date for all Year-End Employer Reports to be filed. They may be filed by mail or eFiled.

We Can Prepare Your 1099-NEC for You

Our office is prepared and ready to file your business’s 1099-NEC (As well as other Year-End Employer Report Forms).  Give our office a call at 425-258-3432 and schedule your appointment today!