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What is Form 1099-NEC?

Form 1099-NEC is used to report payments that a business made during the year, to contractors and other non-employees. 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 contractor fill out a Form W9.

Number 2

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

Number 3

Send us the contractors Form W9 and the amount that you paid them for the year. 

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 contractor information and amount paid, 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 contractors

Our base fee is $60 and includes preparing and filing Form 1099-NEC for one contractor. Each additional contractor is $10. 

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 contractor/recipient (the person you made the payment to) complete Form W9. Form W9 supplies you with the required information for each contractor to issue them Form 1099-NEC. It is best to have the contractor fill out Form W9 before they perform work for you.

A copy of Form 1099-NEC must be provided to the contractor by January 31st of the year following payment. A copy must be sent to the IRS (and some states), also 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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