Create your 1099-NEC.
Organize payer, recipient, compensation and state withholding details and download your completed IRS copy set.
What is Form 1099-NEC?
Form 1099-NEC reports nonemployee compensation — payments a business makes to an independent contractor, freelancer, consultant or other nonemployee. A payer generally has to furnish the form when it pays a nonemployee $600 or more during the year. Unlike a W-2, no income tax, Social Security or Medicare is withheld from these payments, so the recipient reports the income and pays self-employment tax on it.
Payments made through a credit card or a third-party payment network are usually reported on Form 1099-K instead, and corporations are generally exempt unless the payment is for legal or medical services.
1099-NEC boxes explained
| Box | What it reports |
|---|---|
| 1a | Nonemployee compensation paid during the year. |
| 1b | Cash tips of $20 or more in a month, on the 2026 revision. |
| 2 | Payer made direct sales of $5,000 or more of consumer products to a buyer for resale. |
| 4 | Federal income tax withheld, if backup withholding applied. |
| 5–7 | State tax withheld, state or payer's state number, and state income. |
Deadlines and filing
Form 1099-NEC is generally due to the recipient and to the IRS by January 31 following the tax year. Some states also require a state copy, and the deadline can differ. W-2 Simple produces a completed copy set that you can print or hand to an IRS-authorized e-file provider — it does not transmit anything to the IRS.
If you also need to report wages paid to an employee, prepare the W-2 copy set instead, or build a per-period paystub for your payroll records.
1099-NEC questions
Who needs a 1099-NEC?
Any business that pays an independent contractor, freelancer, vendor or other nonemployee $600 or more during the year generally has to furnish Form 1099-NEC. Payments made with a credit card or third-party network are usually reported on Form 1099-K instead.
What is the 1099-NEC filing deadline?
Form 1099-NEC is generally due to the recipient and to the IRS by January 31 following the tax year. Confirm the current deadline and any state filing requirement before you file.
Which boxes does the generator complete?
The generator completes the payer and recipient identification blocks, Box 1a nonemployee compensation, Box 4 federal income tax withheld, Boxes 5 to 7 for state tax information and the account number, and it produces the recipient copy set with instructions.
Does W-2 Simple file my 1099-NEC with the IRS?
No. The generator produces a completed copy set that you can print or e-file through an IRS-authorized provider. It does not transmit anything to the IRS.