Non-employee Compensation Definition | Independent Contractors & More

Accounting Definitions

Browse terms alphabetically

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Non-Employee Compensation Definition

Term Definition
When someone performing a service or providing a product is determined not to be an employee, compensation is paid as a non-employee. This non-employee compensation occurs most frequently with self-employed individuals.

Extended Definition
You pay non-employee compensation to individuals who do work for you that are not your employees. The most common non-employee compensation is paid to the self-employed. In these situations, you report non-employee compensation on Form 1099-MISC.

Related Article:
What Is Non-Employee Compensation? – Definition and Examples

Get Started
Try it free

Sign up today for a free, no-obligation 30-day trial.

Try It Free for 30 Days
Get Started
Take a demo

Kick the tires with a free self-guided demo.

Take a Self-Guided Demo