What is Form 1099-NEC?
Form 1099-NEC is a non-employee compensation (NEC) form given to contractors who have provided services for your business.
Will my contractors receive a Form 1099-NEC?
The Internal Revenue Service (IRS) requires Form 1099-NEC to be provided to contractors you have paid at least $600 during 2025.
If the following four conditions are met, you must typically report a payment as NEC:
- The payments are to someone who is not an employee
- The payments are for services within your trade or business operations (including government agencies and nonprofit organizations)
- The payments are to an individual, partnership, estate, or, in some cases, a corporation
- A minimum of $600 is paid to the payee during the tax year
Do I need to file my contractor’s Form 1099-NEC?
If you have an active payroll subscription that was fully set up prior to 2026, and all eligible bills were marked as paid in 2025, Wave files the federal Form 1099-NEC for each eligible contractor on your behalf, as well as mandated state and local filings. This means you do not need to file your Form 1099-NECs. You must provide a physical copy of their 1099-NEC to your eligible contractors by January 31.
Why can’t I see Form 1099-NEC in my Wave account?
You must have an active subscription to Wave’s payroll feature to access your forms.
Form 1099-NEC for eligible contractors will be available in Wave in the final week of January. You cannot view these forms before that week. Learn how to review and download your forms.
If it’s the last week of January and you do not see the forms in your Wave account, your contractor may not be eligible to receive a Form 1099-NEC.
I don’t want Wave to file my Form 1099-NEC. How can I file Form 1099-NEC myself?
If you have an active payroll subscription, Wave will file all eligible Form 1099-NEC’s on your behalf. You cannot opt out of this filing. If you file outside of Wave, the IRS may count the income twice for your eligible contractors.
If you do not have an active payroll subscription, you must generate and file federal Form 1099-NEC, as well as state/local filings, outside of Wave. To file Form 1099-NEC electronically with the IRS, use their FIRE (Filing Information Returns Electronically) or IRIS (Information Returns Intake System).
To file on paper, review the Instructions for Forms 1099-MISC and 1099-NEC. The IRS requires you to e-file if you have to submit more than 10 Form 1099-NEC. When you file on paper, you are required to submit a Form 1096 outside of Wave. This form is not sent to contractors and is not required if filing electronically.