File 1099-NEC Form
Streamline your 1099-NEC online filing with E-file Workforce Payroll, explicitly designed to ease your form filing stress. The software is cloud-based, so you don’t need to install any applications on your system.
What is the 1099-NEC Form?
1099-NEC is a tax document used to report payments made to contractors. As the name suggests, NEC stands for non-employment compensation. If your business hires contractors for work that requires them to work independently, this Form is designed for you.
All freelance and non-employment income above $600 should be reported via filing 1099-NEC Online.
Are You Required to File 1099-NEC?
If you are a business entity that constantly works with contractors, you must file 1099-NEC and send out copy B to all contractors.
1099-NEC E-Filing Requirements:
To file NEC through an online system, you must have the following information:
- Payer information: Legal name of payer, address (including city, code, and state), business information.
- Payee information: Legal name, address (city, state, and zip code), TIN (Tax Identification Number).
- Payment details: It includes the total amount paid, tax withholding, and more.
When to File 1099-NEC?
Both 1099-MISC and 1099-NEC are filed on the exact dates. It’s typically filed for a whole year. For filing the 1099-NEC Form, the deadline is January 31, 2025. You must file and provide a copy B to the recipient as well. It will help you avoid potential penalties.
Quick Note: Generally, the IRS does not grant an automatic extension for filing Form 1099-NEC. However, you can request a manual extension by using Form 8809 and providing a valid reason.
E-File Workforce Payroll Filing Process:
E-File Workforce Payroll allows you to submit a form with a few clicks. Here is the step-by-step process to file 1099-NEC online:
- Log in or sign up for your E-file Workforce Payroll account.
- Once the dashboards open, check the left menu for new filing.
- Choose the tax year and 1099-NEC from the drop-down.
- A new form will pop up. Add all the details and submit.
- You can also check the box to send email copies to contractors effortlessly.
Have Questions?
Simpler than you think!
FAQs
First of all, choose an easy-to-use e-filing application. Go with the E-file Workforce Payroll application and sign up right away. Log in to your account and select “New Filing.” Next, fill in the tax year and all other necessary details. Submit the application, and it’s done.
All contractors and freelancers who worked for an organization and earned more than $600 get the 1099 NEC form.
1099 NEC is used to report non-employment compensation to the IRS.
According to IRS standard rules, reimbursed expenses should not be included in the 1099-NEC. Especially when the business has an “accountable plan” in place. (An accountable plan requires the contractor to provide receipts or other documentation for their expenses.) On the other hand, reimbursed expenses can be included only if the business doesn’t have an accountable plan.
Yes, nonprofit organizations can receive 1099-NEC if they are involved in contract-based work. Further, the threshold of $600 must be crossed to receive a 1099-NEC as a nonprofit.
Typically, S corporations don’t get 1099 NEC because of their elected nature. However, there are certain exceptions where the S Corps receives a 1099 NEC. For instance, medical and legal payments still require the S corporation to get a 1099 NEC.
Check box number 6. The payer’s state number of 1099-NEC is typically mentioned in box number 6. On the other hand, 1099-MISC forms have the payer’s state number in box 17. Please note that it’s not the “payer’s state number” in the same way as a federal TIN. It’s “State identification no.,” which is the payer’s account number.
Both tax forms are from the same 1099 series, which is used to report payments that typically aren’t from the employer. However, these forms serve different purposes. The 1099 NEC form is for contractors and freelancers, whereas the 1099 MISC is used to report payments made for miscellaneous services.
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