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1099, independent contractors -

Along with all the other changes we have dealt with in 2020, the IRS has also changed how organizations report the money paid to independent contractors, or as they prefer to label it, Non-employee Compensation.

In past years, if your organization paid a person for services who was NOT an employee, you may have needed to file a 1099-Misc for the total amount given over the year. The 1099-Misc listed royalties, rents, and other miscellaneous items, but its most common use was for payments to independent contractors.

Starting in 2020, the IRS now requires payments to independent contractors are shown on a new form 1099-NEC (non-employee compensation) instead of the 1099-MISC (miscellaneous).

Table of Contents

What is Non-employee Compensation?

How do I determine who are Independent Contractors?

Contractor or Employee?

How do I know which contractors need to receive Form 1099 this year?

How do I fill out Form 1099-NEC?

When do I use Form 1099-MISC?

What do I do to my chart of accounts for the 1099 changes?

What else needs to be sent with the 1099s?

When are the 1099s due?

How do I file the 1099

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1099, independent contractors -

I hate to disrupt your activities during this ridiculously busy time of the year, but if you would like to receive FREE IRS Form 1099-MISC, you will need to order them soon. Form 1099-MISC reports to the IRS royalties, rents, and other miscellaneous income, but we are most concerned with Box 7-Nonemployee Compensation. Nonemployee compensation is the payments to workers we use throughout the year that are not on our payroll. If we paid them over $600 throughout the year, we must furnish them a Form 1099-MISC. The red Copy A must be mailed to the IRS no later than...

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1099, independent contractors, self employed -

You can receive free 1099-MISC forms from the IRS to send to your independent contractors. If you paid an individual who was not an employee more that $600 in 2017, you may need to file the 1099-MISC forms and the transmittal Form 1096 to the IRS by the end of January 2019. For detailed information on who is an independent contractor, check out Church Accounting-The How-To Guide for Small & Growing Churches. The forms received from the IRS are the manual type with several layers. If you have more than a dozen to send, you may prefer the computer type...

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1099, independent contractors, IRS -

IRS Form 1099 is required to be sent to independent contractors of your business or organization if they were paid more than $600 for the year. For details on who is and who is not considered an independent contractor, check out my book,  Church Accounting-The How-To Guide to Small & Growing Churches or go to www.IRS.gov. If you only have a few to send out and don't want to pay for a package of 50 at the office supply store, go to www.irs.gov/businesses/online-ordering-for-information-returns-and-employer-returns to order the forms for free directly from the IRS.  You will have to fill them out manually, so if...

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