As a Client/Payer, who receives an IRS Form Standard 1099-NEC?

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For Standard 1099-NEC filings, WorkMarket will generate and file 1099-NECs with your company's tax information listed in the payer section.

At the end of January:

Your company will receive:

  1. Workers Earnings Report (previously called 1099-NEC data report): includes tax information, such as total gross earnings, expenses, deductions, overpayments, filing eligibility, and net earnings for all Workers/Payees who received payment from your company. The report also includes an eligibility column to indicate if the freelancer is expected to receive a 1099-NEC form or not. 
  2. 1099-NEC Forms: a batch of all the 1099-NEC forms that are filed for your Workers/Payees

Your Workers/Payees will receive the following forms if they meet the following criteria:

  1. 1099-NEC Forms
    • US worker
    • Receive $600 or more from your company during the tax year
    • Not setup as corporations (S-corp & C-corp)
      • Note: Workers who opt into mail delivery will receive mailed copies to their address on file.
  2. Earnings Report: provided to all workers regardless of client service type, and includes total gross earnings, expenses, deductions, overpayments, reversals, OAI/GL fees, and net earnings for a given year

For Workers that were bulk onboarded for Prior Balance Loading (PBL) only and did not receive additional payments in WorkMarket, Workers will receive: 

  1. 1099-NEC Forms: will be mailed to the WorkMarket address on file. If Workers need additional copies, they may request a copy to you directly.
    • Note: If Workers were bulk onboarded for Prior Balance Loading only, the Workers will not have tax documents available in their WorkMarket account.

NOTE:

For a full list of the federal tax classifications and whether WorkMarket will furnish and file a Form 1099-NEC, please refer to the table below.

Federal Tax classification Receive a 1099-NEC
Individual Yes
Business* Sole Proprietor or single-member LLC Yes
C Corporation No
S Corporation No
Partnership  Yes
LLC - C Corp No
LLC - S Corp No
LLC - Partnership Yes
Trust / Estate Yes
Non-Profit Yes

* Please note that WorkMarket does not issue Forms 1099-NEC for the following types of reportable corporation transactions: (I) attorney fees reported in Box 1; or (ii) payments by a federal executive agency for services (vendors) reported in Box 1. If your corporation engages in any of these types of transactions, you should seek additional assistance from your tax advisors.

 

You and your Workers/Payees will receive a notification once these documents are available to download in the Tax Documents page of WorkMarket: https://www.workmarket.com/tax/documents (browser version only). 

 

 

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