What’s the Difference Between a Form W-2 and a Form 1099-MISC or Form 1099-NEC?
Employers who withhold payroll taxes issue Form W-2 to employees.
Payers use Form 1099-NEC, Nonemployee Compensation for people or companies who provide services.
- Report payments made of at least $600 in the course of a trade or business to a person who’s not an employee for services
- Report payments of $10 or more made in the course of a trade or business in gross royalties or payments of $600 or more made in the course of a trade or business in rents or for other specified purposes
- Report payment information to the IRS and the person or business that received the payment.