Who Usually Gets a 1099-NEC?
If you paid $600 or more during the year to certain vendors, contractors, or service providers, you might need to send them a Form 1099-NEC. Common examples include:
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​Freelancers, independent contractors, and consultants
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Service providers such as designers, IT specialists, or repair crews
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Vendors who aren’t incorporated (sole proprietors, single-member LLCs)
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Attorneys (even if incorporated) if paid $600 or more
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Anyone you paid for services who is not on your payroll as an employee
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The rules can be tricky — which is why it’s smart to review your payments now instead of waiting until January.
Do Zelle, Venmo, or PayPal Payments Require a 1099-NEC?
It depends on how you sent the payment.
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Paid through a credit card or third-party payment network (like PayPal “Goods & Services”): Generally, you do not issue the 1099-NEC. The payment processor handles reporting using Form 1099-K
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Paid through Zelle or Venmo personal transfers: These are often just bank transfers in disguise. If the payment was for services and the recipient isn’t an employee, you likely still need to issue a 1099-NEC.
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Cash, check, ACH, or bank wire: You handle the reporting — a 1099-NEC may be required.
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The safest move is to track all vendor payments during the year and confirm reporting requirements now, not in January.
Why This Matters
Missing a required 1099-NEC isn’t just a paperwork slip-up — it can trigger IRS penalties starting at $60 per form and climbing up to $330 per form for late filing. In cases of intentional disregard, the penalty can be $660 per form.
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We may have grown accustomed to the IRS’s current backlog, but this is low-hanging fruit for them to enforce — and it’s not worth the risk of being caught out.
The good news? A little prep work now means:
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Less stress in January
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No last-minute vendor chasing
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Full compliance with IRS rules
How We Can Help
If you’d like our team to prepare and file your Forms 1099-NEC, we can make the process smooth and stress-free — but the key is starting early.
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When you’re ready to move forward, you’ll be taken to our Future You Will Thank You page — your quick guide to how our 1099 filing service works.:
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Let us know you want us to handle your 1099-NECs
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Learn exactly what we need from you
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​See the timeline for engagement, payment, and document submission