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What is Form 1099-NEC?

Form 1099-NEC is used to report non-employee compensation payments that a business made during the year. A business is required to report certain payments to the IRS on an annual basis.

How It Works

If you want us to file Form 1099-NEC for you, follow the steps below:

Number 1

Have each recipient fill out a Form W9.

Number 2

Keep track of what you pay each recipient throughout the year.

Number 3

Send us the recipients Form W9 and the amount that you paid the recipient for the year by December 31st.

Number 4

Review the information that we need about your business on our Form 1099-NEC Filing questionnaire. You can contact us to discuss over the phone or email the questionnaire for a quote via email.

Frequently Asked Questions

What's included?

  • Entering recipient and pay information as provided
  • Preparing and filing form 1099-NEC with required federal, state, and city/local agencies
  • PDF containing copies of 1099-NEC returns filed
  • Paper copies of the 1099-NEC for recipients

Our base fee is $35 and includes preparing and filing Form 1099-NEC for one recipient. Each additional recipient is $5. 

Review the information that we need about your business on our Form 1099-NEC Filing questionnaire. You can contact us to discuss over the phone or email the questionnaire for a quote via email.

If the payment meets the following conditions, it counts as non-employee compensation:

  • The payments total $600 or more during the calendar year
  • You made the payment to someone that is not your employee
  • You made the payment to an individual, partnership, estate, or, in certain cases, a corporation
  • You made the payment for services in the course of your trade or business. You are considered engaged in a trade or business if you operate for gain or profit
  • Please note, non-profit organizations, including churches and 501(c) organizations, are subject to these reporting requirements

If you determine that the payment is considered non-employee compensation, have the recipient (the person you made the payment to) complete Form W9. Form W9 supplies you with the required information for each recipient to issue them Form 1099-NEC. It is best to have the recipient fill out Form W9 before they perform work for you.

A copy of Form 1099-NEC must be provided to the recipient by January 31st of the year following payment. You must also send a copy of Form 1099-NEC to the IRS (and some states) by January 31st.

More Information

Understanding the difference between an Employee and a Contractor

Examples of Payments that should be reported in box 1 of form 1099-NEC

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