Form 1099 Non-Employee Compensation (NEC) is an updated version of a previously discontinued form that allows companies to report compensation paid to nonemployees, contractors, vendors and consultants alike. In this specialized self-study webinar, you’ll learn why the form was resurrected, as well as other important details, such as:
- How to prepare the form
- Differences from and changes to Form 1099-MISC
- Avoiding mistakes and fines
- Publication 1220 and e-filing
To provide tax and other professionals with the necessary expertise to prepare and file Form 1099-NEC for reporting compensation paid to nonemployees and other independent contractors.
- Form 1099-NEC Reintroduced
- What gets reported on 1099-NEC
- Differences from 1099-MISC
- PATH (Protecting Americans from Tax Hikes) Act
- Fees, commissions, prizes, awards
- Other forms of compensation
- Payment threshold of $600+
- Nonqualified deferred compensation
- Code Section 409-A requirements
- Special rules for the fishing industry
- Attorney payments
- Payments not to report
-
Preparing Form 1099-NEC
- What information must be
included - Form 1099-MISC Changes
-
Common Mistakes and Solutions
- Issuing to:
- A sole proprietor
- An LLC
- A bankruptcy estate
- Penalties
- Not filing by due date
- Filing paper when required to
e-file
- Keeping accurate records
- Filing unnecessary and incorrect
forms
- Not complying with backup
withholding notices -
Publication 1220 and Changes in E-Filing
- Form 4419 Application for Filing
Information Returns Electroni-
cally (FIRE)
- Using the correct IRS format
- Due dates -
Other Important Changes
- The Taxpayer First Act of 2019
- Retention period for filers
- COVID-19-related distributions
- Debt cancellation under the
Paycheck Protection Program
(PPP)
- Compliance matters
• Recognize the respective payments reported on information returns Form 1099-NEC and Form 1099-MISC
• Recognize the due dates for reporting Form 1099-NEC and Form 1099-MISC information returns
• Identify the implications of mistakenly reporting the same payment on both Form 1099-NEC and Form 1099-MISC
• Recognize the payment threshold triggering the required issuance of Form 1099-NEC and Form 1099-MISC information returns
• Identify the degree to which Form 1099-NEC was updated between 2022 and 2023
• Identify the types of payments which are reported in specified boxes within the Form 1099-NEC and Form 1099-MISC
• Identify the most common problem associated with Form 1099 reporting
• Recognize the maximum penalty associated with the failure to file information returns
• Recognize the recommended period for the retention of information returns