After a 38-year non-appearance, Form 1099-NEC Filing made its return in the 2020 tax year. For the last few periods, business owners were responsible for using Form 1099-MISC Online to report nonemployee compensation. But with Form 1099-NEC, employers can say hello to a restored form and goodbye to reporting nonemployee compensation on Form 1099-MISC.
So, move over, Form 1099-MISC. There’s a new sheriff in town, and its name is Form 1099-NEC.
What is Form 1099-NEC Online?
Form 1099-NEC, Nonemployee Compensation, is a form that uniquely file nonemployee compensation. Form 1099-NEC is not a replacement for Form 1099-MISC. Form 1099-NEC is only switching the use of Form 1099-MISC for reporting independent contractor payments.
And, the 1099-NEC Form Online is really not a new form. It was last used in 1982. However, the IRS recovered the form in 2020. So … why is the IRS bringing back Form 1099-NEC?
What’s included on Form 1099-NEC?
Form 1099-NEC is a properly short form with multiple copies, similar to form 1099-MISC. The data included on Form 1099-NEC includes:
• Payer’s information, including name, address and taxpayer identification number (TIN).
• Recipient’s information, including name, address and TIN.
• The total amount of non-employee compensation paid.
• Any federal or state income tax withheld.

The simple way to get the data that you need from a non-employee is to have them fill out a W-9. With that and the information from your accounting data, you should have enough information to fill out the 1099-NEC.

When is Form 1099-NEC due?

The due date for Form 1099-NEC Filing is Jan. 31. You’ll must to send a copy of the form to both the recipient and the IRS by this date. Like with other tax forms, if the due date falls on a weekend or holiday, you must file the form on the next business day.

Form 1099-MISC Filing has a marginally different due date. You must provide a 1099-MISC to any receivers by Jan. 31, but you don’t need to file it with the IRS until Feb. 28, or March 31 if filing electronically.

You can request copies of official 1099 forms from the IRS website, and you'll receive them by mail. If you file online, you can use the IRS Filing data Returns Electronically (FIRE) system. Both the 1099-NEC and the 1099-MISC can be filed either electronically or by paper form.