Hired 1099 contractors? If you are paid $600,
you must issue form 1099-NEC
If you are an employer or small business owner and paid $600 and more to independent contractors in a single calendar year, you are generally required to issue form 1099-NEC, but no exception based on Hours or duration worked.
Whether they worked:
- Full-time
- Part-time
- On a one-time gig or short-term basis
If the total payment meets or exceeds $600, you must report it to the IRS and provide a copy to the contractor.
Who needs this form?
Independent contractors include freelancers, consultants, graphic designers, web developers, delivery drivers, and more. Basically, anyone not on your payroll but paid for services.
Why is it important?
Form 1099-NEC helps the IRS track non-employee income and ensure contractors report their earnings correctly. Failing to file it can lead to penalties, interest, and even IRS audits.
When do you file?
The deadline to send Form 1099-NEC to both the contractor and the IRS is typically January 31 of the following year. Do not wait until tax season confusion hits, prepare early.
How to stay compliant:
- Keep accurate records of contractor payments
- Collect W-9 forms before work begins
- Use trusted tools to track and report income ️
Staying organized throughout the year makes tax time easier.
How SecurePayStubs Helps Employers Stay 1099-NEC Compliant
1. Easy Paystub Generation for Contractors
SecurePayStubs lets you create professional paystubs for independent contractors in minutes, perfect for keeping clear payment records throughout the year.
2. Easy Paystub Generation for Contractors
Before issuing a paystub, you can ensure your contractor has submitted a W-9 making your Form 1099-NEC preparation easier and more accurate.
3. Easy Paystub Generation for Contractors
By keeping your payment history clear and up to date, SecurePayStubs helps you prepare for Form 1099-NEC filing with ease.
4. Easy Paystub Generation for Contractors
Our system follows best practices for non-employee compensation reporting. Whether you are paying freelancers, consultants, or temporary workers, you are covered.