Filing reminder: 1099-MISC and 1099- NEC
As I already mentioned in my posting called form 1099-NEC, the federal government has created a new form, please check out my blog post for more information about this form and the new way to report contractor payments. This form was created specifically to report payments made for Non-Employee Compensation (hence 1099-NEC) also called subcontractor payments.
Form 1099-NEC
- Reports Non-Employee Compensation, also called contractor payments or subcontractor payments.
- Due on or before January 31st.
- For contractor payments of $600 or more (generally, see prior blog post for more information).
- Penalty for late or non-filing may be as high as $100 per missing or late form filed per year required
- Please also note there may be additional penalties for not providing forms to contractors.
Form 1099- MISC
- Form 1099- MISC reports other business payments made to outside vendors, examples include payments made for:
- Rents paid, prizes and awards, other income payments, fishing boat proceeds, medical and health care payments, crop insurance proceeds, payments to an attorney, there are also a couple of other payments that may qualify, so this is not an exhaustive list
- You no longer use this form for non-employee compensation you use the new form 1099-NEC form for contractor payments.
- Due on or before February 28th (for this year only).
- For vendor payments generally above $600 or more annually, however some limitations and special rules may apply
- Penalty for late or non-filing may be as high as $100 per missing or late form filed per year required
- Please also note there may be additional penalties for not providing forms to vendors.
We help many other individuals and businesses with tax reporting, general tax
compliance and advice. If you do not feel comfortable taking care of these
filings, reach out to us at [email protected].
Anthony Momany, Managing Member, Capstone CPA Group PLLC