Form 1099-NEC — Contractor Reporting
Annual reporting of non-employee compensation of $600+ paid to independent contractors. Issuer must send 1099-NEC to recipient AND IRS by 31 January following the calendar year.
Finn tracks your United States deadlines
AccountsOS handles tax, filing deadlines and invoicing for United States businesses, in plain English. Ask Finn about yours, no signup needed.
Who this applies to
- Any business that paid an independent contractor $600+ in a calendar year
- Includes sole proprietors, LLCs, partnerships, corps making payments
- Excludes payments to corporations (with limited exceptions for legal/medical)
What to file
Form 1099-NEC for each recipient with their name, address, TIN (from Form W-9), and total non-employee compensation. Form 1096 transmittal for paper filers.
How to file
E-file via IRS FIRE system (mandatory for 10+ forms from 2024). Paper accepted under 10 forms. Many payroll/accounting platforms file directly.
Payment due
No payment — informational return only.
Penalties for missing this deadline
Tier-based penalties: $60 per form (within 30 days late), $120 (30 days–1 August), $310 (after 1 August), $630 (intentional disregard). Doubled for failures to both IRS and recipient.
Filing checklist
- Collect W-9 from every contractor at start of engagement
- Aggregate annual payments per contractor (only count non-employee compensation, not reimbursements)
- Determine if contractor is corporation (most are exempt) or sole prop/LLC (1099 required)
- Generate 1099-NEC for each $600+ recipient
- File with IRS and send copy to recipient by 31 January
Common mistakes to avoid
- Missing the 31 January deadline (much earlier than other forms)
- Not collecting W-9 upfront (chasing TINs in January is brutal)
- Issuing 1099 to corporations unnecessarily (they're exempt unless legal/medical)
- Misclassifying employees as contractors (huge IRS penalty exposure)
Never miss a United States deadline
AccountsOS tracks every Internal Revenue Service (IRS) and State Secretary of State (varies by state) deadline and reminds you weeks ahead.
Try Free