Jan 15, 2024
As each calendar year draws to a close, many businesses have to think about their tax filing responsibilities. It can be confusing to figure out which forms to send out, especially as the IRS made some changes to its venerable Form 1099-MISC, Miscellaneous Information, a few years ago and assigned some of its former responsibilities to the relatively new Form 1099-NEC, Nonemployee Compensation.
Do you have freelancers? Many businesses use freelancers, i.e., independent contractors, instead of or in addition to regular employees. Companies need to send these
workers 1099-NECs if they paid them at least $600 during the year. A copy of Form 1099-NEC must be provided to the independent contractor by Jan. 31 of the year following payment. You also must send a copy of this form to the IRS by the same date.
What about other payments? Although Form 1099-MISC is no longer applicable for freelancers, it still has plenty of uses:
All these sources of income require Form 1099-MISC for payments of at least $600. However, for royalties or broker payments in lieu of dividends or tax-exempt interest, the threshold is $10. In addition, Form 1099-MISC is used to report direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment.
And don't forget Form W-9
It's important for independent contractors to send Form W-9 to any client they've worked for during the year. It basically confirms the contractor's name and Taxpayer Identification Number, and companies need this information to properly fill out Form 1099-NEC when tax season rolls around.
This is just a summary of the 1099 situation for both companies and payees. There are other rules and provisions. No matter your status, make sure you work closely with a tax professional so you meet all your responsibilities.
©2023
Jul 31, 2025
Employers conduct exit interviews with departing employees during the final days of offboarding. If done right, these interviews can be a source of valuable information to help the company improve.
Jul 30, 2025
One of the most important ways for an employee to feel valued by their company is to receive a salary increase. This also helps with retention! Read through for ideas on deciding how much of a salary increase should be awarded to your employees.
Jul 29, 2025
Business owners lose about $50 million a year to employee theft and fraud, according to the U.S. Chamber of Commerce. Read through for a glimpse at some of the many ways employees could be stealing from you.
Jul 28, 2025
The recently passed law has a lot of complex provisions, which have led to a lot of misinformation! Fortunately, the IRS has just published a guide to many of the new rules. Read through to read about them, so you can discuss them with your tax advisor.
Jul 03, 2025
When you provide workers with additional benefits on top of their regular pay, some may be taxable. As the rules can get complicated, it pays to familiarize yourself with the requirements. Read through for an overview of which benefits are taxable.
Jul 02, 2025
Disputes over unpaid work time often arise from tasks performed outside official hours — for example, answering emails, traveling between jobsites or changing into work clothes. Employers must understand when these activities count as compensable work. Read through to learn how exempt and nonexempt statuses affect wage obligations.
More News & Press can be found in our Archive.
