Yes, you not only have this right, but you have this responsibility. You'll need to prepare corrected paper forms, just as your research has instructed you to do.
Just checking: Have you already FILED the 1099-NEC? If not, you could just issue a correct Form 1099-NEC and issue it to the contractor. Then just destroy the incorrect forms.
If you have already filed (sounds like you have), you'll need to issue the corrected form and the accompanying 1096. So sorry. I am unaware of any other ways to correct this error.
*** I am NOT a tax expert. I am a seasoned TurboTax user, and volunteer to provide assistance to TT users. Nothing I post is to be considered TAX ADVICE; I bear no legal liability for responses.***
