What is 1099-NEC

What

1099NEC – Nonemployee compensation form

Who

-To send – Business who paid to nonemployee/vendor over $600 total in 2022 for services provided

-To receive – sole proprietor/LLC who provided the services to a business and has been paid by check/ACH/cash.

When

By January 31st of each year for the prior calendar year

How

Filing online using the accounting software or mail to IRS and mail a copy to the vendor

Why

Income tax or social security and Medicare tax weren’t withheld from the payment transaction

Whatch this video to understand more

Info was taken from official IRS website – https://www.irs.gov/forms-pubs/about-form-1099-nec

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