What is Nonemployee compensation?
1.1k views |
Last modified 12/29/2020 7:10:45 AM EST |
Added by ExpressEfile Team
Nonemployee compensation needs to be reported by filing Form 1099-NEC. Previously, nonemployee compensation has been reported in Box 7 of Form 1099-MISC. As per the IRS, a payment is considered nonemployee compensation if one of the following conditions met:
The payer has made payment
- to someone who is not their employee or an individual, partnership, estate, or corporation
- for services in the course of business or trade
- totaling $600 in the calendar year
The nonemployee compensation may include the following payments:
- Commissions (including payments made to nonemployee salespeople)
- Prizes and awards for the services rendered by a nonemployee
- Fish purchases for cash
- Professional service fees paid to attorneys
- Any other form of compensation for services performed for your trade or business by a nonemployee.
You can e-file Form 1099-NEC through ExpressEfile easily and securely.