Year-end means 1099s for the payments you made to independent contractors. Form 1099-NEC is due to the IRS and contractors by January 31, 2022.
What are my 1099 obligations?
The IRS has clear guidelines on who is an independent contractor. Any contractor who was paid more than $600 in non-employee compensation during the 2021 calendar year should receive a Form 1099-NEC.
- Corporations and tax-exempt recipients (confirm their status on their W-9) do not receive one.
- Report the gross amount paid, not the net amount.
Copy A of the form must go to the IRS, Copy B goes to the contractor.
Form 1099-MISC is due to contractors by January 31, 2022 (or February 15, 2022, if amounts are reported in Box 8 or 10), but is not due to the IRS until March 31, 2022, if you file electronically, and February 28, 2022, if you file by paper.
Extensions for filing are only granted in catastrophic circumstances. Penalties can be costly.
Customer Success Manager at Airbase
Jag is a Customer Success Manager at Airbase. He began his career at PwC auditing tech startups. After PwC, he spent seven years at AppDynamics (acq. Cisco) and Pivotal Software (acq. VMware) helping scale their accounting functions from a mid-stage startup to pre-IPO stage. He holds a BA in Accounting from the University of Southern California — Leventhal School of Accounting.