Does your business pay freelance or nonemployee subcontractors – including vendors, independent contractors, and consultants? Starting in reporting year 2020, you will have to use a new Form 1099-NEC to report most nonemployee compensation. This changes how you also use Form 1099-MISC, which has been used by businesses for many years to report calendar-year payments exceeding $600 to individuals who performed business services.
On Friday, December 4th 2020, Becky Munson, Director of YourBooks, outlined how to make sure you are using each form correctly and are in complete compliance.
Understand the change to form 1099-NEC for 2020
Understand what hasn’t changed with the filing process
Familiarize you with the new forms and what will be needed to file
Review filing resources for the 2020 reporting cycle