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Level 2
posted Mar 24, 2023 11:38:47 AM

1099 Contract labor

Hi,

 

We have a home business and we hired 2 contract laborers. We paid each contractor less than $600 during the tax year. Do we still need to issue a 1009-NEC?

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1 Replies
Employee Tax Expert
Mar 24, 2023 11:52:31 AM

No, you don't need to issue a 1099-NEC for contract work under $600.  

 

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.

 

Here's more info on Form 1099-NEC.

 

@cklin86