What is a 1099-NEC form?
Plane generates and fills in 1099-NEC forms for you. Beginning in tax year 2020, employers will no longer use a 1099-MISC form to report nonemployee compensation, including payment to independent global contractors, to the Internal Revenue Service (IRS). Instead, employers need to report nonemployee compensation to the IRS using a 1099-NEC form.
If you hired an independent global contractor who a) is a US citizen, or who is not a US citizen but performed work inside the US, and b) to whom you have paid at least $600 during the tax year, then you’ll need to file a 1099-NEC. For more information on what situations require filing a 1099-NEC, please visit the IRS website.
When should I file the 1099-NEC form?
Employers are required to send 1099-NEC forms to their global contractors and file with the IRS by January 31. By the time Plane starts filing your 1099-NEC (January 24, 2024), your global contractors should have already provided us with a completed W9. Although we file the 1099-NEC on your behalf, you and your global contractors are responsible for confirming and ensuring the information in the 1099-NEC is accurate. If you notice an error in a filed form, contact us as soon as possible.
How do I know if a global contractor submitted a compliance form?
To see if your global contractors completed the compliance forms, click here. In this section, you can see if a global contractor submitted the compliance document or if they're yet to. If it's indicated under the Documents column that Plane is collecting documents, the global contractor is yet to complete the compliance form.
The W-9 form is required to collect information needed to file the 1099-NEC, such as the TIN. If a global contractor is yet to submit the form, they should be notified to do so before we start the filing. If you need help sending reminders, reach out to us.
Once a global contractor has completed the W-9 form, you can proceed to update their TIN, as explained below.
How can I edit the global contractor's name, address, TIN, or amount?
If required, you can edit the global contractor's name, address, TIN, or the amount paid in 2023 to ensure we have the correct information. This should be done before we start the filing (January 24, 2024).
Click here to access forms that are awaiting filing.
To the far right of each global contractor, you'll see 3 purple dots. Click on this and select "Make changes." You can select "Do not file" if you don't want Plane to file the 1099-NEC for a global contractor.
Edit the information as needed and click on the "Update form" button at the bottom.
Here you will find PDF copies of each 1099-NEC form after they’ve been filed.