1099 Forms•9 min read•
1099-NEC Complete Guide: Who Gets One, Who Files One, and How
Everything you need to know about 1099-NEC forms: who must issue them, who receives them, IRS deadlines, penalties, and how to fill one out correctly.
JP
JustPayStubs Team
Updated February 1, 2026
📋 The Short Version: If you paid a contractor, freelancer, or self-employed individual $600 or more for services in a tax year, you MUST issue them a 1099-NEC by January 31st. No exceptions.
What is a 1099-NEC?
Form 1099-NEC (Nonemployee Compensation) is the IRS form used to report payments made to non-employees. The NEC was reintroduced in 2020 to separate contractor payments from other 1099 income types.
Who Needs to Issue a 1099-NEC?
You must file a 1099-NEC if ALL of these are true:
- You paid someone for services (not goods or products)
- The person is NOT your employee
- You paid them $600 or more during the calendar year
- They are a U.S. individual, partnership, or LLC (not a corporation)
⚠️ Corporation Exception: Generally, you don't need to issue a 1099-NEC to corporations (S-corps or C-corps). But you still must issue one to LLCs unless they've elected corporate tax status.
Key Deadlines
| Action | Deadline |
|---|---|
| Mail 1099-NEC to recipient | January 31st |
| File with IRS (paper) | February 28th |
| File with IRS (e-file) | March 31st |
Penalties for Not Filing
| Days Late | Penalty Per Form |
|---|---|
| 1-30 days | $60 |
| 31 days to August 1 | $130 |
| After August 1 or not filed | $330 |
| Intentional disregard | $660 (minimum) |
📌 Pro Tip: Always collect a W-9 from every contractor before their first payment. This gets you all the info you need for their 1099 and protects you if there's ever a dispute.
How to Create a 1099-NEC
- Gather your contractor's W-9 information
- Total up all payments made to them during the year
- Go to justpaystubs.com/1099/create
- Enter payer and recipient information
- Enter the total nonemployee compensation in Box 1
- Download the professional PDF and send to contractor
Related Topics
1099-NEC guide1099 form explainedindependent contractor taxes1099 deadlinewho gets a 1099
Ready to Get Started?
Create professional pay stubs, W-2 forms, and 1099s with our easy-to-use generator. Accurate calculations, instant download.