NOTE: content on this page is subject to change. Always consult a tax advisor.
What are 1099s?
1099 forms are federal income tax information forms used to report earnings and proceeds other than wages, salaries, and tips (which are reported on the federal W-2 form). The forms are filed with the US Internal Revenue Service (IRS) and, if required, state tax departments.
What are the new reporting requirements exactly?
The expected threshold change for 1099-K forms has been delayed until next year. Under the 2021 American Rescue Plan Act, the threshold for triggering a 1099-K form was to be radically lowered to only $600 in payments from a single entity. It’s designed to match the 1099-NEC and 1099-MISC reporting thresholds.
However, the IRS has delayed the implementation of the lower threshold for filing to help smooth the transition. The previous reporting threshold of $20,000 in payments from over 200 transactions remains in effect.
Can I create and send 1099s with Gig Wage?
Yes. When your contractors accept to be paid with Gig Wage, we collect their W-9 data. At the end of the year, you can use Gig Wage to file your 1099s with the IRS and issue 1099s to your contractors. Each 1099 has a small fee which covers:
-
E-filing tax information return to Internal Revenue Service
-
Physical delivery via U.S. mail of tax information return to recipient (if the recipient has not consented to electronic delivery)
-
PDF generation of tax information return
When can I access drafts of my 1099s?
1099 drafts are automatically created and available in your Gig Wage dashboard from January 1st.
What are the due dates from the different 1099 Forms?
-
1099-NEC is a form used to report non employee compensation. Any payments made of $600 or more to an independent contractor or a vendor must be reported on Form 1099-NEC.
-
January 31st - Deadline to file to IRS (electronic or mail).
-
January 31st - Deadline to send to recipient (electronic or mail).
-
-
1099-MISC is used to report the Miscellaneous Information made to self-employed individuals for their work. It is also used to report payments made for rent, fishing boat proceeds, medical and health care payments, prizes, awards, and more. Business owners/payers need to file Form 1099-MISC if they have paid at least $10 in royalties and at least $600 for rents, prizes, and awards, etc.
-
January 31st - Deadline to send to recipient.
-
February 15th - Deadline to send to recipient if the forms include data in box 8 or 10.
-
February 28th - Deadline to send to IRS (mail).
-
March 31st - Deadline to send to IRS (electronic).
-
-
1099-K reports the gross amount of payment transactions from credit cards, digital payments via third-party networks (like Venmo and PayPal), and other freelance platforms that manage payments between two parties. **This includes payments from Gig Wage.
-
January 31st - Deadline to send to recipient.
-
February 28th - Deadline to send to IRS (mail).
-
March 31st - Deadline to send to IRS (electronic).
-
Do you have any more articles about using Gig Wage to prepare and file 1099s?
Yes, check out these quick guides:
Can I talk to someone about the upcoming 1099 tax season?
Yes. If we can help in any way, please let us know. Customer support is available M-F, 9AM to 5PM CT. If you have access to our team via Slack, you can also communicate with us there.
Do you offer tax advisory services?
No. And there are many types of 1099 forms for reporting income and payments. We recommend that you consult with a tax advisor to figure out which 1099s you should file.
Have a question or concern? Send us a message via our live chat in the bottom right corner of this window.