When to issue a 1099-Nec

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If you pay independent contractors, you may have to file Form 1099-NEC, Nonemployee Compensation, to report payments for services performed for your trade or business. 

If the following four conditions are met, you must generally report a payment as nonemployee compensation:

1. You made the payment to someone who is not your employee;
2. You made the payment for services in the course of your trade or business (including government agencies and nonprofit organizations);
3. You made the payment to an individual, partnership, estate, or in some cases, a corporation; and
4. You made payments to the payee of at least $600 during the year. (IRS)

Please see What is Form 1099-NEC? for additional information.