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.
Last Updated By
Christan Neff | Apr 17, 2023