What is Nonemployee compensation?
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Last modified 6/11/2020 8:16:46 AM EST |
Added by ExpressEfile Team
Nonemployee compensation (NEC) is the total wages paid to an independent contractor who performs work throughout the calendar year. It includes fees, commission, prize, and awards. If the payment for services is reported in box 7 in Form 1099-MISC then the payer is treating the concerned person as a self-employed worker or independent contractor, they can simply perform service as a nonemployee.