Tax

    1099-NEC / 1099-MISC

    US tax forms reporting payments to independent contractors and other non-employees.

    Definition

    1099-NEC reports non-employee compensation ($600+ to an individual or LLC contractor). 1099-MISC covers rent, royalties, and other miscellaneous payments. Issue by January 31.

    Related terms

    Independent contractor

    A self-employed person hired to perform specific work under contract.

    W-9 form

    A US tax form independent contractors complete so payers can issue them a 1099.

    EIN (Employer Identification Number)

    A federal tax ID issued to US businesses by the IRS.