If you hire a contractor, it's important to know that the IRS has released a new form for reporting money your business pays to contractors. This new form, called the 1099-NEC, is short for Non-Employee Compensation and replaces "Box 7" on the 1099-Miscellaneous form.

Be Aware: The 1099-NEC form is for reporting nonemployee payments made in 2020 and beyond. If you are reporting payments made to nonemployees prior to 2020, use the latest version of Form 1099-MISC and use the NEC before 2020 box.

It's also important to keep in mind that the 1099 miscellaneous form will still be required for reporting other income such as rent, royalties, healthcare payments, etc., which means most businesses will have to file two separate forms.

If you have used the 1099-MISC form box 7 prior to tax season 2020, you must use the 1099-NEC form going forward.

Sounds like a headache right?

The good news is you don't have to worry about it if you file with WageFiling. As a Quality Supplier to the IRS since 1996, we have the 1099-NEC form ready to go! We have live updates sent to us from the IRS that we share with our customers and can even send you reminders when it's time to file.

Get A Closer Look at Form 1099-NEC

Please see the form below for more information of the critical Dos and Don'ts with Form 1099-NEC