If you pay independent contractors, you may have to file Form 1099-NEC, Nonemployee Compensation, to report payments for services performed for your trade or business. If the following four conditions are met, you must generally report a payment as nonemployee compensation: You made the payment to someone who is not your employee; You made the payment for services in the course of your trade or business (including government agencies and nonprofit organizations); You made the payment to an individual, partnership, estate, or in some cases, a corporation; and You made payments to the payee of at least $600 during the year. (IRS) Please see What is Form 1099-NEC? for additional information.

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When to issue a 1099-Nec

Forum|Forum|3 years ago
February 25, 2023
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DanaB27

If you pay independent contractors, you may have to file Form 1099-NEC, Nonemployee Compensation, to report payments for services performed for your trade or business.

If the following four conditions are met, you must generally report a payment as nonemployee compensation:

You made the payment to someone who is not your employee;
You made the payment for services in the course of your trade or business (including government agencies and nonprofit organizations);
You made the payment to an individual, partnership, estate, or in some cases, a corporation; and
You made payments to the payee of at least $600 during the year. (IRS)

Please see What is Form 1099-NEC? for additional information.

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