Form 1099-NEC

The Form 1099-NEC was reintroduced for tax year 2020. The 1099-NEC covers “Non Employee Compensation” – generally the payment of independent contractors. Prior to the return of the 1099-NEC, the 1099-MISC was used to cover this case, creating the ironic situation of the 1099-MISC being the most common version of the 1099 Family of Reports.

If you are a “1099 worker” you will get a 1099-NEC, and if you use contractors, you will be supplying 1099-NEC forms. They are similar to the older 1099-MISC forms, but focused on the fields relevant to contractors.

Employees (W-2) vs Contractors (1099)

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Employees (W-2) vs Contractors (1099)

Educational Videos

Bette Hochberger, CPA, CGMA2022-05-10T21:08:13-04:00

When deciding between W-2 Employees or 1099 Contractors, you need to consider both the tax implications and the legal status.

1099-NEC Forms – How to

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1099-NEC Forms – How to

Tax Form Howtos

Bette Hochberger, CPA, CGMA2021-05-05T21:03:43-04:00

This video will walk you through the 2020 filing season, so in 2021 new, the 1099 NEC, 1099 Non-Employee Compensation. This form replaced 1099 Miscellaneous, or Misc. So if you have contractors, subcontractors, independent contractors, whatever you want to call them, people who are not employees, not on regular payroll, you're going to need to fill out this form to report what you paid them if it was over $600. So I figured the best thing would be to go ahead and let's walk through it together.