Employers must begin using the 1099-NEC to report independent contractors’ 2020 pay.
For the 2020 tax year, employers will use the new Form 1099-NEC rather than the 1099-MISC to report nonemployee compensation, which includes independent contractors. The IRS released the final version of the new form in December 2019.
HR and payroll should plan ahead and adjust accounting and reporting systems to comply with the new reporting requirements.
Instructions for the new form are available on the IRS Website.
April Mabry is an assistant director at TASB HR Services. Send April an email at firstname.lastname@example.org.
Stay up to date with all the latest HR news and trends by joining the HRX mailing list!