Filing Out the 1099 Forms

When companies use independent contractors—non-employees who work for them and are compensated for their work—they need to track compensation to these employees and fill out an Internal Revenue Service (IRS) Form 1099-MISC and 1099-NEC (starting in 2020) for each U.S.-based contractor. The 1099-MISC form has boxes that cover non-employee compensation (before 2020), along with other types of payment related to these contractors. The 1099-NEC form has boxes for non-employee compensation. MYOB Advanced gives your organization the ability to track compensation amounts paid to independent contractors during the reporting period.

Independent contractors for whom 1099-MISC and 1099-NEC forms are filled out are defined in the system as 1099 vendors. We recommend that you review the current 1099 instructions before you set up 1099 vendors, and review IRS rule changes each year thereafter.