Send specific independent contractors 1099-NEC and 1099-MISC forms. The contractors must meet certain prerequisites in order to receive the two types of 1099 forms.
Send contractors a Form 1099-NEC if they:
- Do freelance work for you. Send a 1099-NEC to individuals who operate as LLCs or as sole proprietors that you paid during a calendar year.
- Complete contract work for your business. Distribute 1099-NEC forms to contractors who are not employed by staffing firms as W-2 employees.
- Offer independent services that equal or exceed $600 during a year. These services that you need to report may range from web design to legal work.
Distribute your 1099-MISC forms if you:
- Need to report rent. Issue landlord clients a 1099-MISC if you are a tenants or property management company. Use the form to report rent paid within the last calendar year.
- Gave prizes and/or awards. Send a 1099-MISC form if someone received a large cash payment. Individuals need the form to report their winnings, including casino winnings.
- Reimbursed a contractor for certain expenses. Certain contractor supplies and items are not subject to self-employment tax. Distribute 1099-MISC forms to contractors that you regularly reimburse.
Invest in W-2/1099 software once you determine what 1099 forms to send to contractors. Users print tax forms on blank paper with our Software Generated Forms software. Learn about our add-on module with our free demo or by calling us today at (405) 340-0697.