Most Important Things to Know About New Form 1099-NEC Filing for Non-employees

 

As year-end draws near, one thing to recollect is that the 2020 duty year points an adjustment in how pay for nonemployees is accounted for to the IRS. Here are 5 things to know:

 

Pay from stock pay will be accounted for in Box 1 of the new structure. This is a change from the Boxsssss 7 utilized on Form 1099-MISC.

 

 The Form 1099-MISC use in earlier years to report pay for nonemployees is supplanted by Form 1099-NEC Filing starting with the 2020 expense year (charge answering to be done in January 2021).

Pay from earlier years (2019 and earlier) should in any case be accounted for on a Form 1099-MISC. For instance, if the organization neglected to send a 1099-MISC to someone in 2019, this is redressed by as yet sending a 2019 Form 1099-MISC, not the new 1099-NEC.

 

Revealing is needed for installments of $600 or more, same as the 1099-MISC.

 

Notwithstanding stock pay for non-workers, chief expenses ought to likewise be accounted for on Form 1099-NEC.

 

Prior to mailing Form 1099-NEC Online to nonemployees, be certain you have the right location. This is particularly significant this year, as there has been a lot of versatility during the pandemic. For additional tips on year-end planning Read More