If you’re in the routine of filing 1099-MISC each year end, you’ll have a new process for the end of 2020. The IRS has resurrected for 1099-NEC to separate out reporting for Nonemployee Compensation. 1099-MISC will continue to be in use for other types of payments. The 1099-MISC form has received a new look, and vendor may now receive both forms at year end.
企业可以做些什么准备呢?
现在是回顾新表单的时候了, 你所在州的备案要求, and update any filing software used by your business to file form 1099. 国税局已经公布了一份表格样本, and updated instructions to help companies prepare for the new process.
Software that processes 1099 filings and accounting software may not be fully updated to account for the new forms. Best practice is to reach out to your individual software provider and determine what process will work best for year end filing and what resources they can offer to support your business.
1099-MISC怎么了?
You may be wondering what is the 1099-MISC going to be used for, now that there’s a separate form for Non-employee compensation. 许多企业只提交第7栏的报告, and have never needed to use the form for any other types of payments. The 1099-MISC has been re-designed and many of the remaining boxes have been moved. 1099-MISC will now be used to report the following payments:
- 租金(box1);
- 奖项(方格3);
- 其他收入支出(栏3);
- 一般, the cash paid from a notional principal contract to an individual, 伙伴关系, 或地产(方格3);
- 任何渔船收益(栏5);
- 医疗和保健支付(框6);
- 作物保险收益(框9);
- Payments to an attorney – gross proceeds (box 10);
- Section 409A deferrals (box 12); or
- 不符合条件的递延补偿(框14).
1099-NEC有什么新功能?
The new form 1099-NEC simply takes everything you would have reported in box 7 of prior years 1099-MISC and moves it to its own forms. 就是这样，听起来很简单. It now includes the nonemployee compensation amount, as well as space to report any federal or state backup withholding you may have. The reporting threshold remains at $600 and the form is still due January 31, or the next business day thereafter if that date falls on a weekend. For 2021 that means these forms will need to be postmarked February 1, 2021. This due date applies whether you file paper forms or electronically. Compensation to be included on this form are:
- 费用
- 佣金
- 奖
- 奖
- 云顶集团4008手机版app performed by a non-employee, including parts and materials
- Payment for services in the course of doing business
- Payments made to individuals, 伙伴关系s, estates and some corporations
- Cash payments for fish purchased (for those working in the fishery industry)
- Payments to attorney’s (do not include gross proceeds)
What hasn’t changed about the form 1099-NEC is the process of documenting the identity of your vendor or service provider. You are still required to obtain a form W-9 for each provider. This form is used to request certain 税 identifying information and certifications or claims of exemption. A TIN (SSN or EIN) is required for all forms W-9. If a worker is not eligible for an SSN, they may apply for an ITIN for information reporting. ITIN cannot be used for employment wage reporting but is acceptable for non-employee compensation reporting. If a vendor or service provider fails to provide you with a TIN or ITIN, then you must withhold 24% of their payments in backup withholding. These dollars are paid in similar to employee wage withholdings, and reported on the 1009-NEC.
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