1099-NEC is now a required IRS form for reporting non-employee compensation. This information used to be included on the 1099-MISC form, but now it has its own form, meaning you will likely have a new process to follow for this tax year.
Additionally, you may now be required to file your forms electronically.
Recipients of the 1099-NEC include independent contractors, gig workers, or self-employed workers. You must file a 1099-NEC if your business paid any of your contractors more than $600 in a tax year. In addition to filing with the IRS, you are responsible to send a copy to those contractors which they will use in their tax filings.
With this change to the 1099-NEC, the 1099-MISC is no longer used in those compensation scenarios and instead is now used to report miscellaneous income such as payments to an attorney or rent. The 1099-MISC form is due on February 28 if filed on paper, or March 31 if filed electronically. The due date for filing 1099-NEC changed from February 28 to January 31.
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