Beginning with tax year 2020, nonemployee compensation will no longer be reported in box 7 on Form 1099-MISC.  Instead, it will be reported on Form 1099-NEC. 

A payment is generally reportable nonemployee compensation if four conditions exist: 

1. the payer made the payment to someone who is not the payer’s employee; 

2. the payer made the payment for services in the course of the payer’s trade or business (including government agencies and nonprofit organizations); 

3. the payer made the payment to an individual, partnership, estate, or in some cases a corporation; and 

4. the payer made payments to the payee of at least $600 during the year. 

Generally, payers must file Form 1099-NEC by January 31, 2022.

If you need help preparing he proper informational forms, please contact our tax department.