Which States Require a Separate Transmittal of 1099-NEC Data?
WHAT IS FORM 1099-NEC, AND DOES IT APPLY TO ME?
Form 1099-MISC has been replaced by Form 1099-NEC for reporting nonemployee compensation. This generally applies to compensation (fees, benefits, commissions, etc.) totaling at least $600 paid to self-employed individuals including freelancers and independent contractors.
Any business that makes nonemployee compensation payments totaling $600 or more to at least one individual or withholds federal income tax from a nonemployee’s payment, will now use Form 1099-NEC to report those payments and withholding.
In implementing the new non-employee compensation form in 2020 during the pandemic, the IRS allocated resources away from making this a more seamless process with the Combined Federal/State Filing Program to focus on the COVID stimulus and other mitigation programs. This fragmentation caused 1099 non-employee compensation reporting to be a logistical nightmare for companies handling this process internally.
Partner with Tab Service to determine your Form 1099-NEC state reporting obligations and navigate the filing process.
YOUR FORM 1099-NEC REPORTING RESPONSIBILITY
While all 1099 forms are sent to the recipient and the IRS, not all states require that the form be submitted to their departments of revenue. Below are the states that require that 1099-NEC data be transmitted, the e-filing deadline, required file layout and a link to the state website for additional information regarding 1099-NEC requirements.
Report to state if withholding, income paid to RI resident from income attribued to obligations of other states or payments to non-residents of RI for services performed in RI.
Report to state if withholding or income made to residents and non-residents for services performed in Wisconsin. If filer does not have a state ID # use 036888888888801 as a placeholder.