Form 1099-NEC
Nonemployee Compensation
Nonemployee Compensation
Form 1099-NEC, “Nonemployee Compensation”, is a tax form used by employers who have made payments to nonemployees for services rendered during the tax year. If you are a business or individual that has made payments of $600 or more to nonemployees, you generally need to file a Form 1099-NEC with the Internal Revenue Service (IRS) for each recipient by the appropriate deadline. This form is part of the 1099 series, which are used to report various types of income that individuals may receive throughout the year other than salary from an employer. It is an essential document for tax reporting purposes, ensuring that information is correctly reported to the IRS.
Use Form 1099-NEC to report nonemployee compensation. If a business needs to report other income, such as rents, royalties, prizes, or awards paid to third parties, use Form 1099-MISC.