Skip to main content
October 27, 2021
Question

Employee pay

  • October 27, 2021
  • 1 reply
  • 0 views

What is the maximum an employer can pay an employee without having to file paperwork?

    1 reply

    October 27, 2021

    Hello t-e-williams!

     

    Thank you for your question. However, we would need more information on your question. Did you mean paying your employee who is an independent contractor? If that is the case, the minimum amount you can pay an independent contractor before issuing Form 1099-NEC is $600.  If the amount is above $600, then you would need to issue Form 1099-NEC for that particular independent contractor. 

    Please see the below article for reference: 

    https://www.irs.gov/businesses/small-businesses-self-employed/reporting-payments-to-independent-contractors 

     

    Please let me know if this answers your questions, or if I can be of further assistance.

    Thank you!

    Shirleyh88

    **Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"