1099 Tax Form

Hiring independent contractors are common practice among many small and large-scale businesses. If your business pays independent contractors to complete services for your company, It is important to understand the reporting requirements when it comes to non-employees. All non-employee compensation should be reported to the IRS using Form 1099-NEC.  What is Form 1099-NEC? The IRS Form 1099-NEC is also called the non-employee compensation form and is used by businesses and individuals to report payments made to nonemployees such as independent contractors, freelancers, solo proprietors, and self-employed individuals for the services they provided during the calendar year. Up until the 2020 tax year, non-employee compensation was reported to the IRS using Form 1099-MISC. Because there was a different deadline to file Form 1099-MISC for non-employee compensation (January 31st) as opposed to all other miscellaneous payments (March 31st), the IRS reintroduced Form 1099-NEC to clear up...