By Payroll Update Staff
The IRS issued January 2024 versions of Form 1099-NEC, Nonemployee Compensation, Form 1099-MISC, Miscellaneous Income, and instructions.
Form 1099-NEC. All employers who remit nonemployee compensation of $600 or more must use Form 1099-NEC to report such payments (box 1). These include payments to independent contractors or specific professional fees, including to individuals, partnerships, estates, and some corporations. Form 1099-NEC must also be filed for each individual subject to backup withholding, regardless of the amount of the payment (report in box 4). For further information on Form 1099-NEC, see Payroll Guide ¶4271.
Form 1099-MISC. Form 1099-MISC is used to report payments of $600 or more for items such as Code Sec. 409A deferrals (box 12), nonqualified deferred compensation (box 15), and other income payments (box 3). The form must be filed for each individual that an employer has withheld any federal income tax (box 4) under the backup withholding rules, regardless of the amount of the payment. For further information on Form 1099-MISC, see Payroll Guide ¶4268.
Updated instructions. The updated instructions note the reduced electronic filing threshold that begins for the 2024 filing year (2023 tax year). Beginning January 1, 2024, taxpayers who file 10 or more information returns in aggregate must file electronically. The reduced threshold applies to all 1099 series forms (see Payroll Guide ¶4264).
Due dates. Form 1099-NEC must be filed by paper or electronically and furnished to recipients by January 31 (or the following business day if the due date falls on a weekend or holiday). Form 1099-MISC is due February 28 for paper filers and March 31 for electronic filers.
