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Do you pay non-employee compensation in excess of $600?

If you pay non-employee compensation in excess of $600 in 2020 or later, form 1099-NEC will need filed instead of form 1099-MISC. 

Form 1099-NEC is the revival of a form that has not been used since 1982. NEC stands for “Non-employee compensation.” The reason for the new form is because the 2015 PATH Act mandates different filing deadlines depending on the type of payments claimed on Form 1099-MISC.

Form 1099-NEC is only for non-employee compensation and is due on February 1, 2021, for the 2020 calendar year. For reference, you can find the new 1099-NEC form and instructions at https://www.irs.gov/pub/irs-pdf/f1099nec.pdf.  

Please contact your Sisterson representative for details.
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