IRS – Nonemployee Compensation

As a reminder, payroll professionals and other payers should use Form 1099-NEC, Nonemployee Compensation, to report nonemployee compensation of $600 or more paid to a payee.

Generally, payers must file Form 1099-NEC by Monday, January 31, 2022, for tax year 2021. Payers must also furnish Form 1099-NEC to payees by this date.

Businesses should also be aware of:

  • The 30-day extension
  • When nonemployee compensation may be subject to backup withholding
  • What to do when a payer must backup withhold
  • What to do if a payer doesn’t have an EIN