Description

Prior to 2020, Form 1099-NEC hadn’t been used since Disney opened EPCOT and Michael Jackson’s album Thriller was released. Beginning in 1983 the IRS combined the reporting of non-employee compensation with the 1099-MISC, and there it stayed until certain provisions in the Protecting Americans from the Tax Hikes (“PATH”) Act of 2015 caused the IRS to resurrect the 1099-NEC once again. The main impetus was a change in the deadlines affecting information reporting of compensation (whether on a W-2 or otherwise). To combat identity theft and fraud, the IRS accelerated compensation reporting to January 31 from February 28 (or March 31 if filed electronically). This meant that some 1099-MISCs would be due January 31 (i.e., those that reported non-employee compensation) and others due later. To avoid confusion, the non-employee compensation was moved back to the reintroduced Form 1099-NEC. This course will provide you with everything you need to know about this form, whether you are a payor or a recipient. 

Areas Covered:-

• The difference between 1099-NEC and 1099-MISC
• Common misunderstandings about 1099 reporting generally
• When 1099-NEC reporting is required
• The difference between employees and independent contractors
• Exceptions to the reporting requirements
• Reporting payments made to attorneys
• Reporting deceased employee’s wages
• Procedures for furnishing statements to recipients of compensation