@tgad1000 wrote:
for the sake of argument. If the business owner didn't file the 1099 NEC on time, can I still report the income that I received from the business owner, therefore, I can pay my social security tax?
Let's start over.
Self-employed person Amy pays Bob to do work for them. The relationship is not employee-employer, but business-subcontractor**.
Amy is required to issue a 1099-NEC to Bob if the amount paid to Bob is more than $600. Amy reports the gross payment, and does not deduct or withhold any taxes. The deadline to issue the 1099-NEC is January 31. There are several web sites (including Turbotax) where Amy can e-file the 1099-NEC, with a copy going to Amy, a copy to Bob, and a copy to the IRS.
Separately, Bob reports his gross income on schedule C, deducts any ordinary and necessary business expenses he can prove with reliable records, and pays income tax and self-employment tax on the net profit. Bob is required to report and pay income tax on his own income, using his own accurate business records, even if Amy does not issue a 1099-NEC or issues it late.
**If Bob is an employee, Amy is required to withhold federal, state, social security and medicare tax, and issue a W-2 by January 31, not a 1099. Amy may have other requirements under state and federal law. Amy must have an EIN for her business if she has employees. Whether Bob is an employee or independent contractor depends on the exact nature of the working relationship, and is summarized here.
https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-o...
