Do I need to send 1099s to contractors?
Short Answer: Usually yes if you paid a contractor $600+ for services and they’re not treated as an employee.
Many businesses issue 1099-NEC forms to contractors. Best practice is collecting a W-9 before paying anyone so you have correct tax information.
Common mistakes:
• Waiting until January to request W-9s
• Not tracking contractor payments
• Misclassifying workers
What we recommend: Make W-9 collection part of contractor onboarding.
Still have questions?
If you’re not sure what applies to your situation, we can help.