Who must file Form 1099-NEC?
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Last modified 1/6/2021 9:54:24 AM EST |
Added by ExpressEfile Team
Form 1099-NEC must be filed by payers if any of the following conditions are met:
- The payer has made payment to someone who is not their employee or an individual, partnership, estate, or corporation
- The payer has made payment for services in the course of business or trade
- The payer has made payment totaling $600 in the calendar year
Form 1099-NEC must also be filed if federal income tax based on backup withholding rules was withheld even if the payment made is less than $600 within a year. You can e-file Form 1099-NEC through ExpressEfile easily and securely.
Nonemployee compensation includes the following types of 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.