I am partnered with another business who sends me sales leads which we pay them a commission. Do I track these payments as a 1099 or is that just for individuals?

[MichaelMc · Accepted solution]

Yes, fee-splitting or referral fee payments should be reported on Form-1099.

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

• You made the payment to someone who is not your employee.

• You made the payment for services in the course of your trade or business (including government agencies and nonprofit organizations).

• You made the payment to an individual, partnership, estate, or, in some cases, a corporation. 

• You made payments to the payee of at least $600 during the year.

  For more detailed information, please refer to this IRS publication: Instructions for Form 1099-MISC