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Non-1099 Payments Definition

May 5, 2015

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Short 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 these 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-MISC. 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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