Non-1099 Payments Definition

The Internal Revenue Service offers a series of tax forms to report specific information. The forms are referred to as the 1099 Series. Non-1099 payments would not be reported on the 1099 Series forms. Several other tax forms are available for reporting non-1099 payments.

Non-1099 Payments Expanded Definition

There are many ways to transfer compensation from one entity to another. A 1099 payment would include banks paying interest to customers with savings accounts using Form 1099-INT or payments from a business to an independent contractor reported on form 1099-NEC. Employers pay employees using form W-2. An example of a non-1099 payment would be reporting the earnings of an employee on the W-2 form.

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Last Updated By

Christan Neff | Apr 17, 2023