W-2 Filing Available for All Businesses and Individuals
We are pleased to announce that all businesses and individuals can now file W-2 forms with Zenwork. If you previously received a letter from the Social Security Administration (SSA) regarding electronic wage report submissions, please note that the issue has been fully resolved. Our systems are fully operational, and we are processing W-2 and W-2C filings without any disruptions.
Thank you for your continued trust!
1099 Forms
Payroll Forms
STOCK OPTIONS
WAGE TAX FORMS
FORM 592-B
ACA FORMS
1098 FORMS
480 FORMS
Extension Forms
Form 8027
Form 8955-SSA
1042 FORMS
5498 Forms
STATE FILINGS
STATE Payroll Forms
STATE ONLY FILING
WEST
MIDWEST
SOUTH
NORTHEAST
File multiple returns through bulk upload and import data directly via QuickBooks, Xero, etc.
Manage multiple clients with a single sign-on and reduce operation workload with Tax1099.
Create, validate, schedule, and deliver forms effortlessly from a single platform.
Manage W-9, 1099-NEC, and other IRS forms for gig workers with our intuitive platform.
Verify Payees/Merchants with real-time TIN Matching and efile in bulk with our API.
Import and organize your trading data with our real-time data management.
TAX FORM FILING
Data Import & Management
USER & WORKFLOW MANAGEMENT
Validation & Checks
PRINT & DELIVERY
COMPLIANCE & security
ADDITIONAL FEATURES
Integrations
Acquire the help required from our support.
Visual guides to help you work with Tax1099
Stay up to date about latest IRS updates.
Read the real-life success stories of our users.
Explore industry insights & latest updates
The A-Z list for tax-related terms & definitions.
Detailed guides for smarter tax compliance.
Listen to thought-provoking insights and discussions with experts.
Tools
As a small business, filing informational returns like nonemployee compensation form, 1099-NEC can be confusing, especially if you are not too familiar with the reporting thresholds and complex IRS rules. This guide is here to help you understand everything your business needs to know about 1099-NEC guidelines.
If your business has ever made payments of at least $600 to a nonemployee, like an independent contractor, freelancer, or gig worker, for their services, you are required to file 1099-NEC and report the payment to the IRS.
Form 1099-NEC is the official nonemployee compensation form. It was originally discontinued during the 1982 tax year and lumped into Form 1099-MISC Box 7.
It was reintroduced again in 2020 because of confusion with deadlines. Nonemployee compensation had a different deadline from the rest of the reporting requirements on 1099-MISC. This led to a lot of confusion and filing errors. The IRS system also struggled with different due dates for the same form, causing potential penalties even if the forms were filed on time.
So, to simplify nonemployee compensation reporting and reduce filing errors, the IRS reintroduced 1099-NEC.
1099-NEC filing requirements 2025 require you to report nonemployee compensation of $600 or more for services in one tax year. This applies to any business entity, including:
For small businesses, understanding what falls under nonemployee compensation is important in order to avoid penalties and potentially damaging IRS penalties.
As per IRS rules, all the compensations paid to non-employees are termed as non-employee compensations. It covers fees, commissions, prizes, awards, or any other compensation for services performed by someone outside your payroll.
Nonemployee compensation form reports the following payments totalling $600 or more in a tax year:
Exclusions: What is not reported on 1099-NEC?
Note: The 1099 NEC deadline for 2025 filing season falls on February 2, 2026. January 31 and February 1 falls on the weekend. According to the IRS, when a filing deadline falls on a weekend or a federal holiday, the deadline is extended to the next business day.
The IRS expects 1099-NEC filing to be done on or before the given deadline. If you missed out on filing, your business could risk IRS scrutiny and possible penalties. With Tax1099, you get deadline reminders and real-time status tracking to ensure you never miss a deadline.
Reporting payments other than nonemployee compensation on 1099-NEC Box 1 like putting rental payments can cause compliance issues. Our platform guides you box-by-box and form-by-form so each payment is reported in the right place.
Payments made via third-party payment networks are reported on Form 1099-K, NOT 1099-NEC. When you e-file with Tax1099, we make sure the correct payment reports go in the appropriate forms.
Incorrect or unverified TIN often leads to backup withholding. You can avoid it by validating TIN in real-time with our TIN match feature. It checks TIN and name combination with IRS records for accurate verification.
1st Scenario: If your business hires a freelance photographer for a corporate photoshoot and you pay them $800, you need to file 1099-NEC since the payment amount is above the 1099-NEC filing requirements 2025.
2nd Scenario: If you paid an independent web developer $2,500 to update your company’s website, you still need to file form 1099-NEC for the service they performed.
3rd Scenario: Paying a contractor through a third-party platform does not require you to file a 1099-NEC. The platform becomes responsible for filing Form 1099-K and issuing it to the contractor.
4th Scenario: If your business pays $1,000 to an attorney for legal advice, you need to report the amount on Box 1, regardless of whether the attorney operates as a partnership or corporation.
5th Scenario: If a landscaping business pays a seasonal worker $700 for one week of yard cleanup, they need to file Form 1099-NEC for the $700 as nonemployee compensation.
It’s easy to feel lost in the filing process. But getting it right matters. The IRS is strict about business reporting nonemployee compensation, and if you miss out on filing your informational returns, they will come after you and your business.
But with the right guidance and e-filing partner like Tax1099, you can simplify your 1099-NEC filing process. Our platform automates form filing, performs real-time TIN matching, and gives you step-by-step support to make filing easier and more seamless.
A: The reporting threshild for 1099-NEC as mandated by the IRS is $600 or more per year, per payee.
A: Paper filing for 1099-NEC is required only if you are filing fewer than 10 informational returns.
A: You do not file 1099-NEC for payments made through a card processor. These type of payments are reported by the card processor on different form called 1099-K.
A: If you made a mistake on your 1099-NEC and you want to correct it, you can file a ‘Corrected’ 1099-NEC. This is done by filing the form with updated information, marking the form as ‘CORRECTED’, and sending it to the IRS as well as the contractor.
A: If your state is not part of the IRS Combined Federal/State Filing Program or has its own filing requirements, you need to file a separate 1099-NEC and submit it to the appropriate state agency.