{"id":8700,"date":"2020-09-16T10:20:20","date_gmt":"2020-09-16T14:20:20","guid":{"rendered":"https:\/\/gtm.com\/business\/?p=8700"},"modified":"2024-08-30T11:09:16","modified_gmt":"2024-08-30T15:09:16","slug":"report-nonemployee-compensation-for-2020","status":"publish","type":"post","link":"https:\/\/gtm.com\/business\/report-nonemployee-compensation-for-2020\/","title":{"rendered":"How to Report Nonemployee Compensation for 2020"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-8701\" src=\"https:\/\/gtm.com\/business\/wp-content\/uploads\/2020\/09\/report-nonemployee-compensation-for-2020.jpg\" alt=\"report nonemployee compensation for 2020\" width=\"1024\" height=\"683\" srcset=\"https:\/\/gtm.com\/business\/wp-content\/uploads\/2020\/09\/report-nonemployee-compensation-for-2020.jpg 1024w, https:\/\/gtm.com\/business\/wp-content\/uploads\/2020\/09\/report-nonemployee-compensation-for-2020-980x654.jpg 980w, https:\/\/gtm.com\/business\/wp-content\/uploads\/2020\/09\/report-nonemployee-compensation-for-2020-480x320.jpg 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1024px, 100vw\" \/><\/p>\n<p>The IRS has <a href=\"https:\/\/www.irs.gov\/newsroom\/how-to-report-nonemployee-compensation-and-backup-withholding\" target=\"_blank\" rel=\"noopener noreferrer\">released form 1099-NEC<\/a> (Non-Employee Compensation) for reporting money a business pays to independent contractors. This new form will replace box 7 on the 1099-MISC form. Most businesses will have to file two separate forms, as employers will still need to use the 1099-MISC form for reporting rent, royalties, healthcare payments, awards, and other income. If you are currently using box 7 on the 1099-MISC form, you will have to move that info to box 1 on the 1099-NEC to report nonemployee compensation for 2020.<\/p>\n<p>Payments of $600 or more to a service provider will be captured by the new form. Employers must use the form for work done by an independent contractor, including vendors, consultants, freelancers, landscapers, and other self-employed individuals.<\/p>\n<p>The IRS defines a reportable payment as a combination of these four conditions:<\/p>\n<ul>\n<li>It is made to someone who is not your employee.<\/li>\n<li>It is made for services in the course of your trade or business.<\/li>\n<li>It was made to an individual, partnership, estate, or, in some cases, a corporation.<\/li>\n<li>Payments were $600 or more for the calendar year.<\/li>\n<\/ul>\n<p>Instructions for using both Forms 1099-NEC and 1099-MISC to report non-employee compensation for 2020 can be found on the IRS website.<\/p>\n<p>GTM keeps our clients compliant with changes to payroll and tax regulations, ensuring accuracy and easing the burden on businesses. Plus we provide automated multi-state, multi-location tax filing, with all data fully integrated into our <a href=\"https:\/\/gtm.com\/business\/what-we-offer\/payroll-services\/isolved\/\">payroll platform<\/a>. <a href=\"https:\/\/gtm.com\/business\/get-a-quote\/\">Request a free quote<\/a> to learn more.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Employers must begin using Form 1099-NEC to report nonemployee comnpensation for 2020 to the IRS.<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[266],"tags":[79,26,23],"post_folder":[],"class_list":["post-8700","post","type-post","status-publish","format-standard","hentry","category-consulting-services","tag-compliance","tag-irs","tag-taxes"],"_links":{"self":[{"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/posts\/8700","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/comments?post=8700"}],"version-history":[{"count":5,"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/posts\/8700\/revisions"}],"predecessor-version":[{"id":13779,"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/posts\/8700\/revisions\/13779"}],"wp:attachment":[{"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/media?parent=8700"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/categories?post=8700"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/tags?post=8700"},{"taxonomy":"post_folder","embeddable":true,"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/post_folder?post=8700"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}