Beginning in 2020, the IRS has changed the method of reporting Non-Employee Compensation, which used to be reported in Box 7 of the 1099-MISC. It is now reported on Form 1099-NEC.
Regardless of your entity type (individual, trust, partnership, etc.) you must file a Form 1099-NEC, Nonemployee Compensation, for each person in the course of your business to whom you have paid the following during the year at least $600 in:
1. Services performed by someone who is not your employee (including parts and materials) (box 1); or
2. Payments to an attorney (box 1).
2021 Instructions for Forms 1099-MISC and 1099-NEC:
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