Are you aware that there is a new 1099 form that must be filed in January 2021? That form is called the 1099-NEC. This form is for those who are paid non-employee compensation as independent contractors, or businesses that are paid $600 or more that are not a part of your company but are due a form claiming what they were paid.
The 1099-MISC will have all other compensation that you have reported in the past, other than what used to be in box seven non-employee compensation.
It’s important to know the due dates for these forms as well. The 1099-NEC is due January 31st of each year if that is a workday. If it falls on a weekend, then it will go to the next business day.
The W9 will need to be on file from your vendor letting you know their tax ID, their address, their legal business name, and their entity type, so you know if they need to receive the 1099-NEC or not.
The due date for the 1099 MISC is February 28th on paper if that falls on a weekday, or March 31st if you file electronically.
If you have any questions about this change or need help processing your returns, feel free to give us a call at (310) 534-5577, or you can reach us at [email protected].
