If your business pays $600 or more to an independent contractor, please read on...
We're getting questions about what type of 1099 is used to report these payments. Let me clarify.
1099 NEC is the new form to report payments to independent contractors. NEC replaces the use of IRS form 1099 MISC. The due date to file 1099 NEC with the IRS, is February 1, 2021.
1099 MISC will continue to be used to report other types of miscellaneous income (i.e.: rental income paid to your landlord or interest paid to a private party). The due date is March 1.
Most of you have your payroll service or another on-line service prepare and file these for you. We suggest you reach out shortly to find out their deadlines for submitting the information.
If you have questions, please let us know.