The NEW 1099 NEC and Common 1099’s 

The NEW 1099 NEC and Common 1099’s

Oct 06, 2020

The NEW 1099 NEC and Common 1099’s

 The NEW 1099 NEC and Common 1099’s

The NEW IRS Form 1099 NEC



The IRS decided to create a separate form to report the Box 7 revenue. Form 1099-NEC is not a replacement for Form 1099-MISC. Form 1099-NEC is only replacing the use of Form 1099-MISC for reporting independent contractor payments.

The reason there was an issue with 1099-MISC Box 7 (non-employee compensation) when the IRS/SSA changed the filing deadline for Box 7 revenue to January 31. This created a situation where there were actually two deadlines for the same form. As you would expect this caused some confusion for many businesses. Many were actually fined for late filings for missing the January 31 deadline.



Again, use Form 1099-NEC to report non-employee compensation. “Non-employee Compensation” includes the following payment types to independent contractors: Commissions, Fees, Prizes, Awards, and Other forms of compensation for services.


Commonly Filed 1099’s:

IRS Form 1099 MISC

Be sure to report each payment in the proper box because the IRS uses this information to determine whether the recipient has properly reported the payment. With the addition of the 1099 NEC the 1099 MISC has significant changes for 2020 reporting.

Report on Form 1099-MISC only when payments are made in the course of your trade or business. Personal payments are not reportable.

The 1099 MISC is by far the most commonly filed 1099. It is a catch-all  form used to report a variety of payments. According to the IRS businesses should file the Form 1099-MISC for each person to whom you have paid during the year:

  • At least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest.
  • At least $600 in:
    • Rents.
    • Services performed by someone who is not your employee.
    • Prizes and awards.
    • Other income payments.
    • Medical and health care payments.
    • Crop insurance proceeds.
    • Cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish.
    • Generally, the cash paid from a notional principal contract to an individual, partnership, or estate.
    • Payments to an attorney.
    • Any fishing boat proceeds.


You must also file Form 1099-MISC for each person from whom you have withheld any federal income tax (report in box 4) under the backup withholding rules regardless of the amount of the payment.


IRS Form 1099 INT

The 1099 INT form is used to report interest income paid in the course of doing business. Interest from personal activity should not be reported. File Form 1099-INT for each person:

  • To whom you paid amounts reportable in boxes 1, 3, and 8 of at least $10.
  • For whom you withheld and paid any foreign tax on interest.
  • From whom you withheld (and did not refund) any federal income tax under the backup withholding rules regardless of the amount of the payment.

Exempt recipients that you are not required to file Form 1099-INT for payments are, but not limited to, a corporation, a tax-exempt organization, any individual retirement arrangement (IRA), Archer medical savings account (MSA), Medicare Advantage MSA, health savings account (HSA), and a few more. For a complete list go to the IRS website.


IRS Form 1099 DIV

The 1099 DIV is used to report dividends paid related to stock ownership. According to the IRS, certain distributions commonly referred to as "dividends" are actually interest and are to be reported on Form 1099-INT. These include so-called "dividends" on deposit or on share accounts in cooperative banks, credit unions, domestic building and loan associations, domestic and federal savings and loan associations, and mutual savings banks.

The 1099 DIV should be filed to report for each person:

  • To whom you have paid dividends (including capital gain dividends and exempt-interest dividends) and other distributions on stock of $10 or more,
  • For whom you have withheld and paid any foreign tax on dividends and other distributions on stock,
  • For whom you have withheld any federal income tax on dividends under the backup withholding rules, or
  • To whom you have paid $600 or more as part of a liquidation.


IRS Form 1099 R

The 1099 R is used to report distributions from retirement funds. Business should file Form 1099-R to report Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., for each person to whom you have made a designated distribution or are treated as having made a distribution of $10 or more from profit-sharing or retirement plans, any individual retirement arrangements (IRAs), annuities, pensions, insurance contracts, survivor income benefit plans, permanent and total disability payments under life insurance contracts, charitable gift annuities, etc.

The 1099 R form should also report on Form 1099-R death benefit payments made by employers that are not made as part of a pension, profit-sharing, or retirement plan.



The filing deadline for recipient 1099s is January 31 annually. If you have further questions regarding the filing requirements and exemptions from filing you should consult the specific instructions for the form in question at the site.



Category List

Tag List

Accountant Shortage (1)
Tax Free (1)
IRS Form 1099 NEC (3)
Sage 300 CRE (1)
Affordable Care Act (3)
New Hire Reporting (3)
Payroll Tax Notice (2)
IRS Forms (1)
Medical Leave (1)
SSA Notice (2)
employee retention (4)
IRS Regulations (1)
TIN Matching (4)
Sage Solutions Provider (1)
Web Forms (1)
Payroll Compliance (5)
Federal Taxes (1)
1095-B (4)
HSA (1)
OEM Payroll (2)
overtime (1)
Top 10 (3)
Student Loan Relief (1)
Fraud (2)
Assessment (4)
Travel Expenses (1)
W-2 (15)
SOC3 (2)
1095-C (4)
eFiling Thresholds (3)
e-Filing (1)
Electronic W-2 (1)
Social Security Number Verification (3)
1099 NEC (7)
1099-INT (2)
Federal Payroll Reports (2)
Aatrix Software, Inc. (5)
Quarterly Reports (1)
Millennials (2)
Payroll Tax Rates (1)
payroll reporting changes (2)
work from home (1)
Taxes (2)
Coronavirus (2)
State Payroll Reports (3)
Coronavirus Aid (2)
FMLA (3)
Tax (2)
State FMLA (2)
Payroll Tax Forms (5)
Standard Mileage Rate (1)
1094-B (2)
IRS Form 941 & 940 changes (3)
Payroll Reports (18)
cyber attacks (1)
Paid Leave (1)
CV Technology Innovator Awards (1)
Staff (1)
eFile (6)
Future (1)
Certified Payroll Reports (1)
Inflation (1)
2020 IRS Form W-2 (2)
Payroll Taxes (5)
unemployment (6)
Reporting (1)
interest rates (1)
Retirement Contribution Limits (1)
Cryptocurrency (2)
eFiling (3)
Payroll Tax (5)
Growth (1)
Aatrix Software (10)
IRS 7200 Tax Form (1)
Technology Companies (2)
Company Of The Year (1)
Security (6)
SMBs (1)
Paypal (1)
Dependent Care (1)
Labor Shortage (1)
American Rescue Plan (1)
Biometrics (1)
1099-PATR (2)
Infrastructure (1)
Sponsorship (1)
Rebranding (1)
Employee Travel (1)
Tax Payments (1)
1099 (12)
Form 941 (3)
SSA (2)
Payroll Tax Reporting (11)
Social Security Tax Deferral (1)
Payroll Tax Relief (1)
Paycard (1)
HR (1)
1099-G (5)
Payroll Software (7)
Accounting Solutions Provider (2)
1099-K (4)
Solution (3)
Federal (1)
IRS 941 Form (2)
Economic Security Act (1)
New Logo (1)
IRS Form W-2 (6)
Deposit Schedule (1)
Social Security Withholding (3)
Tax Return (2)
1094-C (2)
Top Software (1)
Awards (1)
IRS Notice (2)
Employee Benefits (1)
employee classification (2)
TIN Matching Services (4)
Small Business (2)
Withholding (5)
Compliance (5)
Ultimate Payroll (1)
Employee Tax Credits (1)
ACA (8)
941-X (1)
w-4 (2)
Tax Identification Number Verification (2)
CV Magazine (1)
Aatrix (7)
Innovation (2)
SUTA (1)
Solutions (2)
IRS Form 7200 (1)
independent contractors (1)
Sage Solutions (1)
Reports (1)
Cloud (1)
Employee Documentation (1)
Gig Economy (1)
Medicare Tax (1)
CIO Review (3)
Windows (3)
Helpful Hints (1)
PTO Payout (1)
ACA eFiling (4)
941 (8)
employees (3)
IRS (5)
IRS Form W-3C (1)
Payments (1)
Social Security Wage Base (2)
Forms (1)
Technology (3)
ACA Reporting (5)
Employee Retention Credit (2)
Payroll (22)
IRS Form 941 Changes (2)
IRS 7200 Form (1)
SOC2 (4)
Top 100 (2)
Year-End Deadlines (2)
Workplace Efficiencies (1)
Secure eFiling (2)
Travel During Covid (1)
FUTA (1)
IRS Tax Forms (2)
Sage Summit 2015 (1)
State (1)
Recruiting & Retention (4)
Sage (1)
TUG (1)
Review (2)
Child Tax Credit (2)
Virtual Currency (1)
CIO (3)
exempt employee (2)
SUI (1)
IRS Form 1099 (3)
Penalties & Fines (1)
ACA e-filing (3)
Aatrix eFile (10)
minimum wage (3)
Filing (1)
Safe eFiling (1)
Initiatives (1)
vaccine (2)
HFSA (1)
Top 50 (1)
1095 (6)
940 (1)
I-9 (2)
Tax Identification Number (2)
Mac (1)
Payroll Solution (6)
Human Resource (1)
COVID-19 (8)
B-Notice (2)
IRS Form 941 (3)
Sage Summit 2014 (1)
1099 TIN Matching (6)
Accounting Solutions (2)
EEO-1 (3)
Payroll Reporting (14)
IRS 1099 NEC Form (2)
Families First Coronavirus Response Act (1)
Sick Leave (2)
Paycheck Protection Program (1)
Corrections (2)
Business Travel (1)
Per Diem (1)
Venmo (1)
The Families First Coronavirus Response Act (1)
nonexempt employee (2)
CA Pay Data Report (1)
ACA 1095 C&B requirements (3)
Enterprise (2)
1099 G (1)
workplace dynamics (2)
remote office (2)
e-File (1)
Improvements (1)
irstaxtip (1)
Paycheck (2)
IRS Notice 931 (1)
Family Medical Leave Act (2)
CP2100 (3)
1099-MISC (3)
ACA Compliance (3)
covid (2)
Sage Summit (2)

Tag Cloud

IRS Form 941 & 940 changesPenalties & FinesIRS 7200 FormAccounting Solutions ProviderCoronavirus AidSSA NoticeVenmoCA Pay Data ReportState FMLAIRS Form 1099 NECe-FilingTax PaymentsIRS 941 FormPer DiemEmployee TravelSage Summit 2015SOC2EnterpriseEmployee DocumentationemployeesPTO PayoutSage Solutions ProviderCryptocurrencyLabor ShortageCOVID-19e-FileChild Tax CreditOEM PayrollFMLAIRS 7200 Tax FormSage SummitFederal Payroll ReportsThe Families First Coronavirus Response ActFamilies First Coronavirus Response ActReportingTravel During CovidSocial Security Tax Deferral1099-KHSAFraudunemploymentAatrix eFilevaccineWeb FormsNew Logopayroll reporting changesImprovementsRebrandingHelpful HintsSageirstaxtipCP2100Accounting SolutionsCompany Of The YearTravel ExpensesPayroll TaxInflationB-Notice1099 TIN Matchingw-4Aatrix Software, Inc.EEO-1IRS Notice 931Sage SolutionsSage Summit 2014SUTAminimum wageSolutionsSolutionReportsI-9Form 941nonexempt employeeHIPAA1095-BcovidSick LeaveUltimate Payroll1099Economic Security Actcyber attacksTaxesMedical Leave1099-GTaxIRS FormsPayroll TaxesHuman ResourceAccountant ShortageEFTPS1094-BEmployee Tax CreditsPayroll SoftwarePayroll ReportingIRS Form 7200work from homeTechnologyDependent CareSocial Security Wage Baseexempt employeePayroll Tax ReportingCV MagazineFederalIRS Form 941 ChangesVirtual CurrencySSATIN Matching Servicesemployee retentionworkplace dynamicsTUGCorrectionsW-2ACA e-filingAatrix SoftwareAwardsIRS Form 941Payroll Tax ReliefElectronic W-2New Hire ReportingFederal TaxesAffordable Care ActRetirement Contribution LimitsSocial Security Number VerificationSecure eFilingemployee classificationSage 300 CREState Payroll ReportsTax Identification Number VerificationSponsorshipremote officeIRS Form W-3CovertimeSecurityIRSInitiatives1094-CACA 1095 C&B requirementsBusiness TravelComplianceWindowsStudent Loan ReliefIRS Form W-2ACA ReportingCoronavirusFutureAssessmentYear-End Deadlines1095Employee Retention Credit1095-CPayroll ReportsTop 101099-PATRIRS NoticeTop 100Cloud1099-INTDeposit ScheduleInfrastructureWithholding1099-MISCGig EconomyCIOACAMedicare TaxPaymentsindependent contractorseFiling ThresholdsPayroll Tax NoticePaycheckIRS 1099 NEC FormSMBsTop SoftwareEmployee BenefitsPayroll ComplianceACA ComplianceACA eFilingRecruiting & RetentionPayroll SolutioneFileFUTAStateHRAatrixQuarterly ReportsHFSAWorkplace EfficienciesStaff941interest ratesMillennialsTax ReturnPaid LeaveAmerican Rescue PlanTIN MatchingFilingTop 50Forms1099 GInnovationStandard Mileage RatePayrollTax Identification NumberCV Technology Innovator AwardsPaycardIRS Form 1099GrowthPaypalSUISmall BusinessPayroll Tax FormsSafe eFilingIRS RegulationsIRS Tax FormsFamily Medical Leave Act941-XPayroll Tax RatesReviewPaycheck Protection ProgramCertified Payroll Reports940CIO ReviewMacBiometrics1099 NECTax FreeSOC3eFilingTechnology CompaniesSocial Security Withholding2020 IRS Form W-2