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