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.Documentation Index
Fetch the complete documentation index at: https://docs.pluvel.com/llms.txt
Use this file to discover all available pages before exploring further.
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)
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.
1099 timeline
| When | What to do |
|---|---|
| Throughout the year | Track every payment to contractors |
| December | Review totals, chase down missing W-9s |
| January 31 | Deadline to send 1099s to contractors |
| January 31 | Deadline to file with IRS |
Generating 1099s
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?
Collecting W-9s
Get the W-9 before you pay someone. January is too late to chase them down.| W-9 field | What you need it for |
|---|---|
| Name | Goes on the 1099, must match their tax return |
| Business name | If they operate under a different name |
| Tax classification | Tells you if they’re a corp (possibly exempt from 1099) |
| Address | Where to mail the 1099 |
| Tax ID | SSN or EIN — required for filing |
Electronic W-9 collection
Skip the PDF back-and-forth:- Click Request W-9 on the contractor’s profile
- They receive a secure link
- Complete and e-sign online
- Info saves automatically
1099-NEC boxes explained
| Box | What it shows |
|---|---|
| 1 | Total nonemployee compensation (what you paid them) |
| 4 | Federal tax withheld (usually $0 unless backup withholding) |
| 5-7 | State tax info (if applicable) |
Filing with the IRS
Pluvel e-files 1099s on your behalf:- You review and approve the forms
- We submit electronically to the IRS
- You receive filing confirmation
- Contractors get their copies
Paper filing (if you must)
- Print 1099s on official IRS forms (you can’t use plain paper)
- Mail Copy A to the IRS
- Mail Copy B to the contractor
- Keep Copy C for your records
State filing
Many states want 1099 data too:| Requirement | How it works |
|---|---|
| Combined filing | Most states participate — IRS shares the data automatically |
| Separate filing | Some states require you to file directly with them |
Corrections (1099-NEC Corrected)
Made a mistake? Wrong amount, wrong name?- Generate a corrected 1099-NEC
- Mark it as a correction (checkbox)
- File with IRS
- Send to the contractor
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
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
PTO management
Track vacation and sick time.