1099 Contract labor

[cklin86]

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?

[MarilynG1]

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