Yes, unless the business you hired is a corporation, or an LLC that has elected S-Corp status you need to send a Form 1099-NEC. It can be difficult to get tax IDs and related information from contractors after the fact, so I suggest you print out some blank Forms W-9, and whenever you hire a contractor have them fill one BEFORE you pay them.
If a business fails to issue a form by the 1099-NEC or 1099-MISC deadline, the penalty varies from $50 to $280 per form in 2022, depending on how long past the deadline the business issues the form. There are maximum fines per year for small businesses. If a business intentionally disregards the requirement to provide a correct payee statement, it's subject to a minimum penalty of $570 per form in 2022 or 10% of the income reported on the form, with no maximum.
Filing it after the fact would be better than not sending. That said, the chances that the IRS comes after you because of a single $900 1099-NEC are very, very remote.
For more information on 1099s, click on Penalties for Missing the 1099-NEC or 1099-MISC Filing Deadline
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
