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What is a 1099?
Forms 1099-MISC and 1099-NEC are IRS tax forms used to report income other than wages, salaries, tips, and other employee compensation. Depending on the type of payment issued to you, you may receive one or the other, or on some occasions - both! Please see below for differences between the two forms. For more information you can view the IRS Instructions for Forms 1099-MISC and 1099-NEC here.
1099-NEC:
The 1099-NEC will be used to report non-employee compensation issued for $600 or more during a single calendar year. This includes fees, commissions, or other forms of compensation for services performed by you, for a company, the Payer.
Box 1: Non-employee compensation of at least $600.
Box 2: Checkbox indicating payer made direct sales totaling $5,000 or more of consumer products to recipient for resale
Box 4: Federal income tax withheld. In most cases, Box 4 will be blank. However, Justworks may be required to apply backup withholding at the applicable IRS rate in certain situations, for example, if a valid taxpayer identification number (TIN) has not been provided or if the IRS has notified Justworks of a TIN mismatch. .
Box 5-7: State tax specific information.
1099-MISC:
As the name implies, the 1099-MISC form will be used to report certain miscellaneous forms of payment outlined below. This includes payments of at least $10 in royalties, $600 in rents, medical and health care payments, and certain other miscellaneous forms of payment. Please see general box descriptions below for reference.
Box 1: Rents paid for $600 or more.
Box 2: Royalties paid for $10 or more.
Box 3: Other types of payments that are not considered wages, like prizes or awards.
Box 4: Federal income tax withheld. In most cases, Box 4 will be blank. However, backup withholding may apply in certain circumstances (e.g., missing or invalid TIN).
Box 5: This box reports fishing boat proceeds.
Box 6: This box is for payments providing healthcare services made in the course of trade or business over $600.
Box 7: Checkbox to indicate proceeds from the sales of consumer goods for $5,000 or more.
Box 8: This box will be populated by substitute payments in lieu of dividends or interest.
Box 9: This box will be populated if you’re a farmer that received crop insurance proceeds of $600 or more paid by an insurance company.
Box 10: This box will be populated by gross proceeds totaling $600 or more paid to an attorney.
Box 11: This box will be populated by the amount paid for the purchase of fish for resale.
Box 12: This box will show Section 409A deferrals.
Box 13: This box will indicate if there is a FATCA filing requirement.
Box 14: This box will indicate total compensation of excess golden parachute payments subject to a 20% excise tax.
Box 15: This box will include any non-qualified deferred compensation.
Box 16 - 18: These boxes will show state tax specific information.
Frequently Asked Questions
What Do I Do With My 1099?
You will receive your 1099 by mail and directly in your Justworks account. The electronic and paper copies will be identical. Consult your tax advisor regarding which copy or copies are appropriate for your specific filing method and jurisdiction.
Why Did I Receive Two 1099s?
If you received non-employee compensation in addition to any of the compensation types mentioned in the 1099-MISC description above, you will receive two Forms and should use both when filing.
How Do I Find My 1099 in Justworks?
Log in to Justworks and click on “Documents” in the left-side menu bar to find a PDF copy of your 1099.
How can I access my 1099 if I no longer work for a company that uses Justworks?
You can still access your Justworks account by logging in here, even if you no longer work for the employer that paid you through Justworks.
If you’ve forgotten your username or password, you can click the “Forgot username or password?” hyperlink and enter the “home” email address linked to your account if you no longer have access to the work email we have on file.
If you’re still having trouble, please give us a call at (888) 534-1711.
When will my 1099 be Available on Justworks?
By January 31st each year (IRS deadline). If January 31 falls on a weekend or federal holiday, the deadline is the next business day. Contractors receive electronic access via their Justworks account; mailed copies are also sent to those who have opted in.
Can you expedite my 1099?
No, the generation of tax documents cannot be expedited. 1099s will be available in your Justworks account and/or mailed to you (if applicable) no later than January 31.
I Lost My 1099. Can I Get Another Copy?
We only issue one 1099-NEC and/or 1099-MISC, if applicable, for each individual. But don’t worry! You can print off a PDF copy of your 1099/s from your Justworks account.
My Company is an S-Corp or a C-Corp. Why Did I Receive a 1099?
Generally, payments to corporations are exempt from 1099 reporting. However, the IRS requires 1099 reporting for certain payments made to C-corps and S-corps regardless of corporate status, including payments for legal services (attorneys' fees) and medical and health care payments.
Disclaimer
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.