If your business hires independent contractors, it is your responsibility to send Form 1099-NEC to each eligible contractor and report those payments to the IRS. Missing the deadline or sending incorrect information can lead to IRS penalties, frustrated contractors and compliance red flags.

But waiting until January to figure it all out? That’s where a lot of headaches begin. Here's a quick, clear guide to make sure you’re ready before the deadlines hit.

Who Needs a 1099?

You must send a Form 1099-NEC if:

• You paid $600 or more during the year to a non-employee individual or business
• The payment was for services (not goods or products)
• The contractor is not a corporation (though there are some exceptions like attorneys)

This applies to freelancers, consultants, designers, subcontractors and anyone you paid for services outside of payroll.

What Information Do You Need?

To issue a 1099, you’ll need the contractor’s:

• Full legal name
• Business name (if applicable)
• Address
• Taxpayer Identification Number (TIN or SSN)
• Business entity type

All of this is collected on Form W-9.

✅ Pro Tip: Get the W-9 Up Front

One of the biggest mistakes business owners make is waiting until January to request W-9s. By then, contractors may be unresponsive or long gone.

Solution:
Ask for a signed W-9 at the start of the working relationship—before you pay a dime. Make it part of your onboarding or contractor agreement process. This saves you from scrambling, chasing forms, or even delaying 1099 filings (which can lead to penalties).

Key Deadlines to Remember

• January 31 – Send Form 1099-NEC to contractors
• January 31 – Submit 1099-NEC to the IRS, either electronically or by mail

If you’re filing 1099s electronically, you can use tools like QuickBooks, Track1099, or your payroll provider. Just be sure to verify contractor info before filing to avoid rejected forms.

Simplify Your 1099 Process

The best strategy is to stay proactive:

• Collect W-9s early
• Track payments to contractors throughout the year
• Use accounting software that flags 1099-eligible vendors

Need help setting up your 1099 tracking system or catching up on overdue filings? That’s where I come in.

Let’s make next January less stressful. [Contact me here]