Form 1099-NEC Replaces Form 1099-MISC for Nonemployee Compensation
Form 1099-NEC is a new form specifically for the reporting of nonemployee compensation – currently defined as payments to individuals not on payroll on a contract basis to complete a project or assignment. This would include all independent contractors, gig workers, or self-employed individuals who previously had their payments reported in Box 7 of Form 1099-MISC.
Form 1099-NEC is not a replacement for Form 1099-MISC. This form is only replacing the use of Form 1099-MISC for reporting nonemployee compensation payments. The 1099-MISC form will still be used to report rents, royalties and other miscellaneous income.
Form 1099-NEC has the same due dates as the 1099-MISC:
- Copies of 1099-NEC must be provided to recipients by January 31st (February 1, 2021 for tax year 2020)
- Government copies must be filed with the IRS and applicable state by January 31st (February 1, 2021 for tax year 2020)
As always, if you have any questions or need assistance with this or any other topic, please contact our office at 215.675.8364.
DISCLAIMER: The WM Daily Update, COVID-19 Business Resources and COVID-19 Client News Alerts and other related communications are intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.
