The IRS has reinstated Form 1099-NEC, Nonemployee Compensation, effective for tax year 2020 and forward. This form will report nonemployee compensation formerly reported on line 7 of Form 1099-MISC, Miscellaneous Income.
Steps to Submitting Your Company’s 1099-NEC Files
- Ensure you have a Withholding Account or are a Withholding Submitter for the company.
- If you own/operate the business or are a payroll employee for the company, first apply for a Withholding Account for the company.
- If you are a tax or payroll professional that handles payroll for multiple companies, sign up to be a Withholding Submitter using Revenue Online for any companies for which you are submitting annual reconciliation documents, if you have not done so already.
- Separate all other 1099 and W-2 forms from the 1099-NEC forms. You cannot submit additional forms when submitting 1099-NEC files.
- Note: 1099-NEC files must be submitted as a .TXT file.
- Submit 1099-NEC using Revenue Online. You can submit 1099-NEC forms by manual entry or by uploading them. For instructions on how to do this, review the "Submit Year-End Statements" information on the How to File Withholding Online web page.