What is Form 1099-NEC?

The workflow

• Collect a signed W-9 from every US contractor before paying them
• Track payments through the year
• File 1099-NEC by January 31 once the year's payments cross the reporting threshold (historically $600; raised by recent legislation for payments after 2025 — confirm the current figure at filing)

What's excluded

Payments to corporations (attorneys excepted), card and platform payments already reported on 1099-K by the processor, and foreign contractors working outside the US — they certify with a W-8BEN instead.

Penalties

Per-form, scaling with lateness, and much worse for intentional disregard. An honest, on-time form is always the cheap path.