Overview
Form 1099 is a federal tax form used to report various types of payments. The IRS requires companies to report income paid to non-employee businesses or individuals via a 1099 form when specific tax thresholds are met. To learn about Form 1099 requirements, see the IRS website’s, Instructions for Forms 1099-Misc and 1099-NEC.
Types of 1099s
There are two types of 1099s:
1099-NEC
1099-MISC
1099-NEC
A 1099-NEC (Non-Employee Compensation) is a tax form used to report payments for services performed by vendors who are not employees.
A 1099 NEC must be filed when:
Payments are $2,000 or greater for services
Any amount of tax backup was withheld for non-employees
Companies must submit 1099-NEC forms to both vendors and the IRS by January 31st.
1099-MISC
A 1099-MISC is a tax form used to report various types of payments to vendors.
It's required when vendors receive:
$10 or more in royalties
$2,000 or more in
Rents
Prizes and rewards
Healthcare payments
Gross proceeds paid to an attorney (when paying someone else's lawyer)
Other income payments
Corporations and LLCs operating as S-Corps or C-Corps are generally exempt from receiving a 1099-MISC, except when they receive payments for legal or healthcare services.
Companies must submit 1099-MISC forms to both the vendor and the IRS by March 31st.
Access vendor 1099s
Vendor 1099s are permission based
To access, your account must have one of the following roles enabled:
Role: Company Admin, Company Manager
Custom role with: Vendors - Full access, Project access
You can open vendor 1099 reporting from Company view or from a PAS project.
Company view
In the left-side navigation, under Company, click …More
Click All vendors
On the All vendors dashboard, click 1099 reporting
PAS project view
In the left-side navigation, click the dropdown menu to select the PAS project you want to open
In the Project menu, click Vendors
On the All vendors dashboard, click 1099 reporting