1099s & Workers
How to Issue a 1099-NEC: Step-by-Step
Short answer
Collect a W-9 from every contractor before paying them. By January 31, send Form 1099-NEC to each contractor who received $600+ in cash/check/ACH AND file with the IRS. The easiest way is electronic filing via the IRS IRIS portal or a payroll/tax tool.
1099 filing is annoying but mechanical. If your bookkeeping is clean, the whole batch takes under an hour.
The five-step process
- Before paying any contractor, get a completed W-9 (name, address, TIN/SSN, business entity). No W-9, no check.
- Track payments by contractor through the year. Most accounting tools tag this automatically.
- In early January, pull a report of contractors paid $600+ via cash/check/ACH (exclude card and processor payments — those get 1099-K from the processor).
- By January 31, send each contractor their copy (mail or e-deliver) and file with the IRS via IRIS, your accounting tool, or a service like Track1099.
- Keep a copy and the W-9 for 4 years.
Common mistakes
- Including amounts paid by credit card or PayPal (those are reported on 1099-K by the processor)
- Forgetting to file with the IRS — sending the contractor a copy is not enough
- Missing the January 31 deadline (penalty starts at $60 per form and escalates)
- Not collecting a W-9 upfront and chasing it in January
Frequently asked questions
Do I send 1099s to corporations?
Generally no — payments to C-corps and S-corps are exempt. Exception: attorneys get a 1099 regardless of entity.
Tax-ready records, automatically.
Glo Invoice tags every expense and 1099 contractor so tax time is a download, not a scramble.
Sources & further reading
Primary sources we consulted when writing and reviewing this guide.