Records
Form 1099-NEC
The form a business files to report what it paid an independent contractor during the year.
Also called 1099, Nonemployee compensation.
If your business paid an unincorporated contractor at or above the annual threshold for services, you file a 1099-NEC naming them and the amount, and send them a copy. It is due in January.
The threshold was $600 for many years and rises to $2,000 for payments made in 2026, indexed after that. Payments to corporations are generally exempt, and payments by card or through a third-party network are reported by the processor instead.
The information comes from a Form W-9, collected from the contractor before you pay them rather than chased in January.
In Contha
Contha reads Schedule C line 11 back into the payees behind it, marks who crossed the threshold, and flags the ones with no W-9 on file.