StartEaseForm 1099-NEC: paying contractors and the January 31 deadline
What to collect from a contractor, when a Form 1099-NEC is needed, and where to find it in StartEase Payroll.
When do I need to send a contractor a Form 1099-NEC?
When you paid a contractor $2,000 or more for services in the year. Give the contractor their copy and file with the IRS by January 31 after the year ends. The IRS instructions for Form 1099-NEC say which amount and which due date apply to the year you are filing, so check them each year.
Read the current instructions and form from the IRS. StartEase has not copied the rules here, because the amount and due date can change.
Sources (government sites):
Who is a contractor?
A contractor is paid for a result and decides how the work is done. An employee works under your control. The law looks at the facts, mainly who has the right to control how the work is done. Do not report the same person as both. If you are not sure, ask your payroll team before you pay.
What do I collect before the first payment?
- Open Contractors and add the person or business with contact details.
- Record their tax form: Form W-9 for a US person, or a W-8 form for a foreign person.
- Type the tax ID once. It is stored encrypted and is not shown back to you.
Where do I find the 1099-NEC in StartEase Payroll?
Open Reports & forms, choose 1099-NEC (contractors) and the year. It lists the contractors paid at or above the amount in the year. Use Download whole report, Copy for Excel or Download CSV to take the figures with you.
Give each contractor their copy and file with the IRS. Ask your payroll team who files for your company. Then record it under Paid / filed record with the date and the confirmation number. Marking it done only records it for you; the IRS site confirms receipt. See Reports & forms: every report in the dropdown.