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Paid a freelancer, consultant, or contractor more than $600 this year? You owe them a 1099-NEC. It’s the contractor equivalent of a W-2 — tells them (and the IRS) how much you paid them so they can report it on their taxes. The deadline is January 31. Miss it and there are penalties. Forget someone and they’re upset when the IRS asks why their income doesn’t match what was reported.

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When you need to send a 1099-NEC

You must issue 1099-NEC when all of these are true:
  • You paid them $600 or more during the year
  • They’re not an employee (no W-2)
  • Payment was for services (not goods/products)
  • They’re an individual, partnership, or LLC (not a C-corp or S-corp)

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Who doesn’t get a 1099

  • Corporations — C-corps and S-corps are exempt (with some exceptions)
  • Under $600 — You can still send one, but it’s not required
  • Merchandise purchases — Buying products, not services
  • Personal payments — Not business-related
When in doubt, collect a W-9 upfront. It tells you their tax ID and entity type so you know whether a 1099 is required.

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1099 timeline

WhenWhat to do
Throughout the yearTrack every payment to contractors
DecemberReview totals, chase down missing W-9s
January 31Deadline to send 1099s to contractors
January 31Deadline to file with IRS
Both deadlines are the same day. Don’t wait until January 30.

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Generating 1099s

1

Go to Tax Forms

Navigate to Payroll → Tax Forms → 1099s.
2

Review the list

Pluvel shows all contractors you paid $600 or more. Make sure no one is missing.
3

Verify information

For each contractor, check:
  • Name — Exactly as it appears on their W-9
  • Address — Current mailing address
  • Tax ID — SSN or EIN from their W-9
  • Total paid — Does it look right?
4

Generate forms

Click Generate 1099s. Forms created for everyone on the list.
5

File and send

E-file with IRS. Send copies to contractors (email or mail).

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Collecting W-9s

Get the W-9 before you pay someone. January is too late to chase them down.
W-9 fieldWhat you need it for
NameGoes on the 1099, must match their tax return
Business nameIf they operate under a different name
Tax classificationTells you if they’re a corp (possibly exempt from 1099)
AddressWhere to mail the 1099
Tax IDSSN or EIN — required for filing

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Electronic W-9 collection

Skip the PDF back-and-forth:
  1. Click Request W-9 on the contractor’s profile
  2. They receive a secure link
  3. Complete and e-sign online
  4. Info saves automatically
If they’re slow to respond, Pluvel sends reminders.

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1099-NEC boxes explained

BoxWhat it shows
1Total nonemployee compensation (what you paid them)
4Federal tax withheld (usually $0 unless backup withholding)
5-7State tax info (if applicable)
For most contractors, only Box 1 has an amount. The rest are zeros.

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Filing with the IRS

Pluvel e-files 1099s on your behalf:
  1. You review and approve the forms
  2. We submit electronically to the IRS
  3. You receive filing confirmation
  4. Contractors get their copies
E-filing is faster and catches errors before submission.

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Paper filing (if you must)

  1. Print 1099s on official IRS forms (you can’t use plain paper)
  2. Mail Copy A to the IRS
  3. Mail Copy B to the contractor
  4. Keep Copy C for your records
Paper filing has more room for error and takes longer. E-file if possible.

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State filing

Many states want 1099 data too:
RequirementHow it works
Combined filingMost states participate — IRS shares the data automatically
Separate filingSome states require you to file directly with them
Pluvel handles combined filing automatically. If your state requires separate filing, we’ll let you know.

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Corrections (1099-NEC Corrected)

Made a mistake? Wrong amount, wrong name?
  1. Generate a corrected 1099-NEC
  2. Mark it as a correction (checkbox)
  3. File with IRS
  4. Send to the contractor
The corrected form replaces the original. The contractor may need to amend their tax return.

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Backup withholding

If a contractor refuses to give you their Tax ID:
  • You must withhold 24% from their payments
  • Report the withholding in Box 4
  • Deposit the withholding with the IRS
This is a pain for everyone. Collect W-9s upfront to avoid it.

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Tracking payments all year

Don’t wait until December to figure out who needs 1099s. Pluvel tracks:
  • Every payment to every contractor
  • Running YTD total per person
  • Alerts when someone approaches $600
  • Warnings for missing W-9s
“This contractor is at $580 and has no W-9 on file” — you’ll know before it’s a problem.

PTO management

Track vacation and sick time.