compliance

What is Form 1099-NEC?

Form 1099-NEC reports non-employee compensation (independent contractor payments) of $600 or more in a calendar year. Issuers must send 1099-NEC to recipients and the IRS by 31 January of the following year.

Current Rate (Calendar year, due 31 January)

N/A — reporting threshold $600

Example

Acme Inc. paid a freelance designer $5,000 in 2024. Acme issues a 1099-NEC by 31 January 2025 to the designer (with their W-9 info: SSN/EIN, name, address) and files copies with the IRS.

Source: Internal Revenue Service (IRS)

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