Non-Employee Compensation (NEC): Form 1099 & Other Changes Webinar (2 Hours)

Overview: 

New Form 1099 Non-Employee Compensation (NEC) must be filed by February 1, 2021, and is a revised and updated version of a previously discontinued form that allows companies to report compensation paid to nonemployees, contractors, vendors and consultants alike.  In this specialized 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
Objective: 

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.

Emphasis: 
  • 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 for 2021
    - 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
Bottom
Prerequisite: 

None.

Preparation: 

No advance preparation required.

Level of Knowledge: 

Overview.

CPE Credit: 
2.00
NASBA Field of Study: 
Taxes