KarenP12
Expert Alumni

Self employed

@maraoz_p2022 

1099-NEC, 1099-K and 1099-MISC had different amounts of money prior to 2022, but as of 2022 all of them aligned at  $600, is when you are required to issue these documents.  

Based on your description of the work, the new form 1099-NEC is the one you should be using as it is contract work and the contractors are doing this as a job, thus they should be filling out a Schedule C unless their business is a partnership or an S-Corp.

 

In addition to filing out the 1099-NEC or for any of the documents listed above you should file one 1096 to the federal government summarizing all the 1099-NEC or other documents that you are submitting to the government. 

 https://www.irs.gov/forms-pubs/about-form-1096

These forms are due on January 31, 2023 for the Tax Year 2022  see page 6 under Item C:   https://www.irs.gov/pub/irs-pdf/i1099gi.pdf

 

The IRS plans on having a new portal sometime in January, 2023 to electronically submit these forms.  Another source to electronically submit these forms is Intuit's Quick Employer Forms:   https://quickemployerforms.intuit.com/welcomeNewCustomer.htm

Access to this is included with some of the Home and Business software packages.

 

Most states follow the IRS thresholds, if you withhold Federal or State Taxes ensure that they are submitted on a timely basis, but this is not common with contractors.

 

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