Posted on January 12, 2021

If your nonprofit hired contract workers prior to 2020, you reported their total earnings to the Internal Revenue Service (“IRS”) in a Form 1099-MISC.  The IRS has introduced the Form 1099-NEC for the 2020 tax year, for reporting independent contractor income.  If your nonprofit hired a contract worker (including independent contractors, gig workers, or self-employed individuals) and paid that individual more than $600 in 2020, you must report their earnings in a Form 1099-NEC by February 1, 2021.  Read this article for more information about when to use a the Form 1099-NEC versus the Form-1099 MISC.

The IRS is even hosting awareness meetings January 12th and 14th for tax-exempt organizations to get familiar with the Form 1099-NEC.  Click here for information on dates, times and direct links to the IRS’ Zoom meetings this week.