The IRS has replaced their 1099 Miscellaneous Form regularly provided to subcontracted labor (or non-employees) with a new form: the 1099 NEC beginning with the 2020 calendar year.

If you’ve outsourced work and paid subcontractors a minimum of $600 throughout the year, this is now reported in box 1 on the 1099 NEC Form provided to the recipient. Transmittal Form 1096 still accompanies these 1099’s when submitting to the IRS.

For more information, visit https://www.irs.gov/pub/irs-pdf/f1099nec_20.pdf