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emy
Level 2

1099 for now-partner

An individual was paid over $600 for contracting work by our company during the last tax year. A few months later they were added to one of the 2 member entities (LLC partnership) that make up our company (same tax year). Since they also became a part of the comany in 2021, do they still need a 1099NEC for the payment made to them prior to their integration in the company? 

 

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1 Reply
MinhT1
Employee Tax Expert

1099 for now-partner

Yes. Before the contractor joined the LLC, he worked as a contractor and should be issued a form 1099-NEC.

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