New 1099 Form for 2020

Monday, January 4, 2021

Local governments need to be aware that there is a new 1099 form for 2020 filing – the 1099 NEC. NEC stands for non-employee compensation and this new form must be used in lieu of a 1099 MISC for reporting payments to individuals other than employees. The $600 reporting minimum still applies, as does the "no minimum" requirement for attorneys and health care providers. The penalties for not using the correct form are high, and the IRS will not "count" a 1099 MISC that was filed in error but on time as a timely filing. Learn more at https://www.irs.gov/pub/irs-pdf/i1099gi.pdf or consult your payroll experts.