BillM223
Expert Alumni

Deductions & credits

Are they providing services to your employees, or is your business a health care related business and they are helping you to deliver this services?

 

If the latter, then I would think that you would issue them a 1099-NEC, because they are "in the business" of providing certain services, and they need to be able to declare income, expenses, and calculate self-employment taxes.

 

Box 6 is for amounts you, the employer, spend on your employees in regards to health care (like paying for an HRA).

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"