If you typically report non-employee compensation to independent contractors on Form 1099-MISC, you will have a new form due this January. The IRS has shifted the reporting of non-employee compensation to form 1099-NEC, in an effort to simplify the use of each form. This new form will require all applicable filers to furnish the 1099-NEC to the payee and file with the IRS.
Threshold for 1099 Filing
A snapshot of some of the requirements include:
1099-NEC
- Generally, payments of nonemployee compensation totaling $600 or more require the filing of new Form 1099-NEC.
1099-MISC
- Rent payments totaling $600 or more are still reported on Form 1099-MISC
- Gross attorney fees totaling $600 or more are still reported on Form 1099-MISC
Important Due Dates: 1099’s have various due dates depending on the recipient. A quick reference of these due dates is a follows:
1099-NEC
- January 31, 2021 – Due date to the recipient
- January 31, 2021 – Due date to IRS
1099-MISC
- January 31, 2021 – Due date to the recipient
- February 28, 2021 – Due date to IRS
If you have any questions regarding the new IRS 1099 reporting requirements, please reach out to either Eric Beining or Missy Dejene.
