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Online Form 1099-NEC Generator

Generate form 1099-NEC at the touch of a button. A simple to use tool which eliminates errors and saves time.

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Form 1099-NEC - What is it used for?

Form 1099-NEC is used for reporting non-employee compensation (NEC). Non-employees will include people such as contractors and sole proprietors who have provided work throughout the tax year. Although, companies will only need to provide these non-employees with Form 1099-NEC if they have paid them $600 or more during the tax year.

 

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Creating your 1099-NEC form has never been easier thanks to our online generator which is one of the most advanced 1099-NEC generator tools online. It’s simple to use and it automatically fills out all the information required, giving you more time to focus on the things that matter to your business. All you need to do is provide some important details such as company information and non-employee wage amount, then your form will automatically generate in seconds, ready for use!

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Useful Information

What is Form 1099-NEC?

Did you have some work done by people who are not direct employees of your company? We understand that not all companies are the same when it comes to distributing the workload. Some prefer to do it all in house, while others sub-contract their work out. We know how confusing this can all seem from a tax perspective. That is the reason we want to try and explain what form 1099-NEC is and how you can use it for your business.

Form 1099-NEC is used for reporting non-employee compensation (NEC) that occurred during the tax year. If you had a freelancer or contractor doing work for your business and they were paid $600 or more then you need to provide them with Form1099-NEC.

What are the differences between Form 1099 NEC and 1099-MISC?

Form 1099-NEC and 1099-MISC are both used as a way of reporting income to the IRS. The difference between them is that 1099-NEC covers non-employee income and 1099-MISC covers miscellaneous income.

Non-employee compensation is a term used when someone who is not an employee e.g. freelancer or contractor is paid by a company in exchange for services. Miscellaneous income is categorised as income that does not fit other tax forms. Non-employee income used to fall under box 7 on the 1099-MISC form itself. Now there is no option for this as form 1099-NEC covers non-employee income.

Why is Form 1099-NEC Returning?

Form 1099-NEC was actually first introduced back in 1982 but was replaced with Form 1099-MISC which allowed you to report payments of $600 or more for non-employees. Form 1099-NEC was reintroduced due to the fact that it had a single filing deadline for all payments that are used for the form.

Another reason for the reintroduction of 1099-NEC is due to the rise of the gig economy. Nowadays more and more companies are choosing to work with freelancers and contractors that can be sourced online via digital platforms. Form 1099-NEC will help alleviate the burden of doing taxes when it comes to working with these types of people.

How to file Form 1099-NEC

When completing Form 1099-NEC it is standard procedure to fill out two copies with the same information. One of these copies is given to the contractor while the other copy is sent to the IRS. You need only fill these forms out if you paid the contractor/freelancer $600 or more within that tax year.

It is not a contractor's responsibility to send Form 1099-NEC to the IRS. Although, they may ask for a copy for their records which is completely standard procedure.

You can file form 1099-NEC either online or by mail. You can download the form as a PDF on the IRS website and fill it in. IRS Free File is one way you can complete the form, or you can use tax filing software.

Looking at the example of form 1099-NEC shown below you can see in box 1 that it states non-employee compensation. This amount should be $600 or over otherwise there is no need to fill the form in.

an example of a blank 1099-nec form

What are the filing deadlines for Form 1099-NEC

The filing date for form 1099-NEC is 31st January of the year following the tax year covered by the form. The only time that the filing date may be later is when January 31st falls on a weekend or a holiday. If this happens then the deadline will be moved to the next available working day.

Are there penalties for missing the filing deadline for form 1099-NEC?

The short answer is yes, there are financial penalties for those who miss the filing deadline. The exact amount will depend on how far you missed the deadline and when you submit your correct files. There is a possibility of extending the deadline by submitting Form 8809 to the IRS. Financial penalties for missing filing deadlines are as follows:

  • $50 if you file within 30 days
  • $100 if you file more than 30 days late, but before August 1
  • $260 if you file on or after August 1

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First time creating a stub. Customer support was AMAZING. I had a few self-induced issues and customer support was there from start to end.

Brandon Wilson