Yes, you can file a 1099 form for payments that you make to your independent consultants. The slightly different title does not prevent employers from using the form. Once you figure out your tax obligations for independent contractors, you should look for software that meets your exact needs. The main difference with a contractor and consultant is that an “independent contractor” is a legal umbrella term. Whereas, an independent consultant is a non-legal classification for a type of contractor that is an expert consultant or advisor in their qualified field. You often distribute two types of 1099 forms to your independent consultants:
Form 1099-NEC – Send the common 1099 form to your independent consultants that you pay $600 or more for the job.
Form 1099-K – Distribute Form 1099-K to an independent consultant that makes sales through your third-party payment method once they hit an income-through-sales-transactions threshold.
Our W2/1099 Forms Filer supports W2, W3, and many 1099 forms. Download our free demo software today and click through a fully functional version of our software with a few exceptions.