1099 Reporting for 2020

1099 Reporting for 2020

If you paid any individual over $600 from your trade or business, you are required to file a 1099 to that individual or LLC.  This includes attorney fees even if they were paid to a legal firm.

The filing deadline for 1099 forms is January 31st, 2021.

New for 2020 is form 1099-NEC.  This form is used to report non-employee compensation which was formerly reported on form 1099-MISC. 

Non-employee compensation includes:

1. Payments made to independent contractors.

2. Payments made for services in the course of your trade or business.

3. Payments made to an individual, partnership or estate.

Form 1099-MISC will still be used to report the following:

1. Rents

2. Prizes and awards

3. Other income payments

4. Generally, the cash paid from a notional principal contract to an individual,

partnership, or estate

5. Any fishing boat proceeds

6. Medical and health care payments

7. Crop insurance proceeds

8. Payments to an attorney

9. Section 409A deferrals

10. Nonqualified deferred compensation

If you can’t determine if someone is an employee or contractor contact us to setup a consult.

Morgan & Associates does offer 1099 services.  If you would like more information please email us at [email protected].