Generate your Form 1099-NEC in Wave using Form 1099-NEC: Generate and file contractor Nonemployee Compensation forms.
Form 1099-NEC federal filing requirements
Form 1099-NEC is a non-employee compensation (NEC) form given to contractors who have provided services for your business. The Internal Revenue Service (IRS) requires Form 1099-NEC to be provided to contractors you have paid at least $600 during 2024, as well as file the form(s) with the IRS.
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.
You may also be required to file your 1099 with the state. For state-specific information, see Form 1099-NEC: State filing requirements.
Due dates and federal penalties
The IRS requires you to file Form 1099-NEC by January 31 of the following tax year. You also have to provide a copy to your contractors by the same deadline. If the last day of January falls on a weekend, the filing deadline moves to the following business day.
If your forms are not filed by the IRS deadline, the IRS will issue a penalty based on when the correct form is filed. For a complete list of deadlines and penalties, see this IRS resource: Information Return Penalties.
Generate your Form 1099-NEC in Wave using Form 1099-NEC: Generate and file contractor Nonemployee Compensation forms.