Know Which 2020 IRS Form to Use if You Paid Independent Contractors?

Beginning with the 2020 tax year, Form 1099-NEC will replace Form 1099-MISC box 7 for reporting non-employee compensation, which includes payments to ICs.

To put it simply, the new 1099-NEC performs the exact same function as 1099-MISC box 7. It captures payments of $600 or more to service providers that are either sole proprietors or members of a partnership. Depending on the needs of your business, you may have utilized any number of independent contractors, such as:

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