The same year as COVID, the IRS introduced Form 1099-NEC in 2020. Rather re-introduced, but since the last time it was used Ronald Reagan was president, we can be forgiven for not recognizing it immediately.
1099-NEC is supposed to simplify reporting non-employee (or contractor) payments and attorney’s fees for businesses by not including those payments on the more confusing 1099-MISC. Here’s what you need to know about the 1099-NEC:
- You must report payments for services performed by someone who is not your employee over $600.
- You must report payments to an attorney over $600.
That’s it. Don’t forget they are due on January 31. For more information on filing 1099’s, please refer to the IRS website, www.irs.gov or call ClaytonCarter at (478) 621-4145.
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