What is Form 1099-NEC?
The 1099-NEC is a new form used for filing Nonemployee Compensation that was previously reported on Box 7 of the 1099-MISC.
When is the form due?
The IRS requires you to file Form 1099-NEC, either paper or via E-File by February 2, 2021.
Who should file the 1099-NEC?
Business who make payments of $600 or more to contractors, freelancers and more. If you previously filed form 1099-MISC to report these payments you will now need to file Form 1099-NEC for 2020.
Are there any consequences for filing Form 1099-MISC for nonemployee compensation payments in 2020?
Your client may be subject to penalties if the payments are not correctly reported on Form 1099-NEC.
Do you have any more information or instructions on how to fill out Form 1099-NEC?
Yes. Please click here to download more information. To view the informational video please click here