Starting with Tax Year 2020 Non Employee Compensation will be reported on Form 1099-NEC instead of 1099-MISC.
The IRS requires form 1099-NEC to be filed for every contractor you paid more than $600 in a calendar year. If you use Wave Payroll, Wave can file these forms on your behalf, but you can also file manually, if you prefer. Here’s how.
You can create and manage your 1099 contractors from the Vendors page, under Purchases in the left-hand navigation menu. From the Vendors page, click Generate next to the contractor you want to file for.
You can also generate 1099-NEC forms for contractors under Payroll > Tax forms.
There are three versions of 1099-NEC for each contractor:
- Copy A Download to file your taxes. This form is for informational purposes only. In order to manually file with the IRS, you’ll need to order official forms from the IRS. This includes Form 1096, which summarizes all of the 1099-NEC informational returns you are filing.
- Copy B Download and send to your contractor so that they can file their taxes.
- Copy C Download for your records.
To file, copy the information from Copy A onto an official form and mail it to the IRS before the deadline. For more detailed information, check out the official instructions provided by the IRS.