Help on which 1099 form to use
We understand that you have some questions about changes to 1099-MISC and the new 1099-NEC form. Here are some information that can help you choose which forms to use.
Prior to the 2020 tax year, employers would use box 7 in the 1099-MISC form to report non-employee compensation payments. This is now changed, and instead of using box 7 in 1099-MISC, employers will use the dedicated form, 1099-NEC, to report on non-employee compensation payments.
If you did use box 7 on your 1099-MISC form in prior years, and have reported payments in other miscellaneous categories, this year you most likely need to file BOTH 1099-MISC and 1099-NEC forms.
If you did NOT use box 7 on your 1099-MISC form in prior years, and do not need to report non-employee compensation payments this year, you will only need the 1099-MISC form.
If you ONLY used box 7 on your 1099-MISC form in prior years, and DO NOT need to report payments in other miscellaneous categories, this year you will only need the 1099-NEC form.
You can learn more about 1099-NEC here: https://blog.formswift.com/1099-nec-form-guide-f86ed34177ec
Please also note that due to the above changes, the non-employee compensation box in the 1099-MISC form has been removed. While there are no new fields in the 1099-MISC form, some order of the fields/boxes have been moved around - so be careful when filling this out.
We hope this answers your questions regarding these forms. Please contact us if you need further assistance.