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posted Jan 9, 2023 11:07:25 AM

Multiple 1099s for same contractor because of payroll provider change

Mid-year in 2022 we changed our payroll provider, it appears I now will need to prepare and file multiple 1099s for my contractors, one from each payroll provider for each cotractor.  Is that okay?

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4 Replies
Level 15
Jan 9, 2023 1:16:19 PM

@Critter-3 knows quite a bit about payroll. Stay tuned.

Level 15
Jan 9, 2023 1:28:18 PM

There is nothing wrong with doing so and it is the correct way to handle it even if the EIN did not change.  

Level 15
Jan 9, 2023 1:32:30 PM

You, the business owner, are only required to file one 1099-NEC for your subcontractors that shows all their payments for the year.  However, if the records are in multiple places, and it is easier to send multiple 1099s, that's not a problem.  You might want to let the contractors know what to expect.  (The total should equal the overall total for the year, of course.)

Level 15
Jan 9, 2023 1:50:47 PM

May I ask.....you are using a payroll service to pay 1099 independent contractors?   Do you also pay employees that get a W2?