Can I File a 1099 Form for Payments Made to a Vendor?

Simply put, sometimes. The Internal Revenue Service does not require businesses to report all payments that you make to an independent contractor with a 1099. Make sure you know when to report your payments using the form to avoid any unnecessary complications for the business and your hired contractors. Use a Form 1099-MISC or Form 1099-NEC if your business reports payments to a vendor for:

  • Rent
  • Royalty fees
  • Prizes
  • Non-employee compensation

Only use a 1099 form when you work with vendors who are either classified as individuals, sole proprietors, or partners. Do not issue a 1099 form for a corporation. The IRS does not require you to file a 1099 either if you pay a vendor with a credit card. Attorneys are one exception. You should send them a Form 1099 whether or not their firm is incorporated.

We handle 1099 reporting and filing with our core W2/1099 Forms Filer software and optional add-on E-File module. Download our free 1099-etc Demo software to see how our base product integrates with five additional types of add-on modules.

Software Solutions from AMS

Our W-2 and 1099 Forms Filer is our only required platform. From there, users pick the services they need. Choose from the tools below to build out your customized accounting software.