What is Form 1099-NEC?

Form 1099-NEC is the IRS form used to report nonemployee compensation paid to contractors, freelancers, and certain vendors. Businesses use information collected through Form W-9 to determine which payees require a 1099-NEC.

Example: A business pays an independent contractor $10,000 during the year and reports the payment on Form 1099-NEC.

Related terms: 1099, W-9, Accounts Payable