[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-1-en-105":3,"doc-detail-303058-en":53,"doc-seo-303058-105":75},{"code":4,"msg":5,"data":6},0,"success",[7,14,19,24,29,34,39,44,49],{"id":8,"doc_module":9,"doc_module_name":10,"category_name":11,"show_sort_weight":12,"slug":13},11,1,"Template","Presentations",90,"presentations",{"id":15,"doc_module":9,"doc_module_name":10,"category_name":16,"show_sort_weight":17,"slug":18},12,"Resumes",80,"resumes",{"id":20,"doc_module":9,"doc_module_name":10,"category_name":21,"show_sort_weight":22,"slug":23},14,"Invoices",70,"invoices",{"id":25,"doc_module":9,"doc_module_name":10,"category_name":26,"show_sort_weight":27,"slug":28},15,"Posters",60,"posters",{"id":30,"doc_module":9,"doc_module_name":10,"category_name":31,"show_sort_weight":32,"slug":33},16,"Social Media",50,"social-media",{"id":35,"doc_module":9,"doc_module_name":10,"category_name":36,"show_sort_weight":37,"slug":38},17,"Forms",40,"forms",{"id":40,"doc_module":9,"doc_module_name":10,"category_name":41,"show_sort_weight":42,"slug":43},18,"Letters",30,"letters",{"id":45,"doc_module":9,"doc_module_name":10,"category_name":46,"show_sort_weight":47,"slug":48},21,"Paper Templates",5,"papers-templates",{"id":50,"doc_module":9,"doc_module_name":10,"category_name":51,"show_sort_weight":4,"slug":52},158,"General","general-158",{"code":4,"msg":5,"data":54},{"doc_id":55,"user_id":56,"nickname":57,"user_avatar":58,"doc_module":9,"category_id":35,"category_name":36,"doc_title":59,"doc_description":60,"doc_content":61,"file_id":62,"file_url":63,"file_type":64,"file_size":65,"view_count":66,"is_deleted":4,"is_public":9,"is_downloadable":9,"audit_status":9,"page_count":67,"language":68,"language_code":69,"site_id":70,"html_lang":69,"table_of_contents":71,"faqs":72,"seo_title":73,"seo_description":60,"update_tm":74,"read_time":9},303058,18829141979164,"Cart","https://eur-avatar.wpscdn.com/davatar_6f874abed73319feea01a86fa6f0fab8","Form 1099-NEC - Nonemployee Compensation - Rev. January 2025","Diocese of Buffalo Internal Audit newsletter explains how and when to use IRS Form 1099-NEC to report nonemployee compensation. It covers filing thresholds ($600+), who must file for vendors and attorneys, what types of payments and services are included, and how to obtain vendor TINs using Form W-9. It also addresses key exceptions (corporations, certain tax-exempt entities, legal services rule), LLC tax classifications, catering scenarios, and the January 31 deadline plus electronic filing requirements.","DIOCESE OF BUFFALO INTERNAL AUDIT NEWSLETTER  \nForm 1099-NEC, Nonemployee Compensation Rev. January 2025  \nInternal Audit Contact Information  \nVisit the Internal Audit webpage for more Newsletters and other useful items/tools:  \nInternal Audit Website  \nPlease contact the DOB Audit team if you have any questions.  \n(716) 847-5572  \nWHAT IS FORM 1099-NEC?  \nForm 1099-NEC is the Internal Revenue Service (IRS) form used by businesses to report nonemployee compensation. Before 2020, all nonemployee compensation was reported on Form 1099-MISC. Payments made to independent contractors, freelancers, sole proprietors, and self-employed individuals must be reported using Form 1099-NEC.  \nWHO CAN FILE FORM 1099-NEC?  \nForm 1099-NEC, Nonemployee Compensation, must be filed for each applicable vendor in the course of your operations to whom the parish has paid $600 or more in a calendar year for:  \n1. Services performed by someone who is not a parish employee; or  \n2. Payments to an attorney. The term “attorney” includes a law firm or other provider of legal services.  \nNonemployee compensation of $600 or more includes fees, rents, professional fees, maintenance, cleaning, snow removal, lawn care, repairs, commissions, and awards for services performed as a nonemployee, and other forms of compensation for services performed for your parish or school by an individual who is not an employee. Payments to independent contractors for related supplies must also be reported. Remember, $600 includes payment for the service (labor cost), related supplies paid to perform the services, delivery fees, etc.  \nTo report payments to independent contractors/service providers on Form 1099-NEC, parishes/schools must obtain the individual’s taxpayer identification number (TIN) . Independent contractors are required to promptly supply their taxpayer identification numbers (TIN) . Parishes must use Form W-9 to obtain the individual's TIN, which can either be their SSN or EIN (employer identification number) .  \nENTER YOUR VENDOR INFORMATION IN PDS LEDGER  \nVendor names in PDS Ledger must be entered to include the entire business name (e.g. ,“Company”,“Inc.” or “LLC”. The “Tax Information” section of the PDS Ledger vendor setup screen must be utilized to flag possible independent contractors. Reports generated from PDS Ledger documenting payments to independent contractors can then be easily generated to determine if Form 1099-NEC needs to be filed.  \nIf Form W-9 indicates they are an LLC that is taxed as a sole proprietorship or a partnership, then a 1099-NEC is required. Completed W-9 forms must be separately filed in alphabetical order so they can be utilized each year. Always check the W-9 before you issue payments to any vendor who may be required to get a 1099-NEC.  \nForm 1099-NEC recipients receive this form instead of Form W-2 because the parish does not consider them an employee and does not withhold income tax or Social Security and Medicare tax. They are responsible for paying their own income tax and selfemployment tax.  \nEXCEPTIONS TO FORM 1099-NEC  \nPayments for which a Form 1099-NEC is not required include:  \n• Payments to a corporation (including a limited liability company (LLC) which is a C or S corporation) . Obtain a W-9 to determine if an LLC must receive a Form 1099-NEC.  \n• The exception from reporting payments made to corporations does not apply to payments for legal services. Thus, Form 1099-NEC is required when the parish/school has paid $600 or more for legal services, including payments to an attorney, a law firm, and other legal service providers.  \n• Payments to a tax-exempt organization, such as another Parish or Regional School, tax-exempt trusts, federal, state, or local government.  \nLIMITED LIABILITY COMPANIES  \nA Limited Liability Company (LLC) can be taxed as a sole proprietorship (single-member LLC), partnership (multi-member LLC), C Corporation, or S Corporation.  \nWhether or not a parish/school has to file a Form 1099-N","cbCail04MczyGaIJ","https://ap.wps.com/l/cbCail04MczyGaIJ","pdf",192376,4,2,"English","en",105,"# Internal Audit Contact Information\n# What is Form 1099-NEC?\n# Who can file Form 1099-NEC?\n# Enter your vendor information in PDS Ledger\n# Exceptions to Form 1099-NEC\n# Limited Liability Companies\n# Catering Companies\n# Deadline\n# New Electronic Filing Requirements","[{\"question\":\"What is Form 1099-NEC used for?\",\"answer\":\"Form 1099-NEC reports nonemployee compensation to independent contractors, freelancers, sole proprietors, and self-employed individuals. It replaced using Form 1099-MISC for reporting nonemployee compensation before 2020.\"},{\"question\":\"Who must file Form 1099-NEC and when?\",\"answer\":\"Parishes/schools file Form 1099-NEC for each applicable vendor if they paid $600 or more in a calendar year for services by someone not a parish employee or for payments to an attorney. The form is due January 31 for the recipient copies and the IRS.\"},{\"question\":\"When is Form 1099-NEC not required?\",\"answer\":\"Form 1099-NEC is not required for payments to a corporation, including certain LLCs treated as C or S corporations, and for payments to tax-exempt organizations. However, the corporation exception does not apply to payments for legal services, so 1099-NEC is required for $600+ legal services.\"}]","Form 1099-NEC - Nonemployee Compensation - Rev. 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It replaced using Form 1099-MISC for reporting nonemployee compensation before 2020.","Answer",{"name":126,"@type":121,"acceptedAnswer":127},"Who must file Form 1099-NEC and when?",{"text":128,"@type":124},"Parishes/schools file Form 1099-NEC for each applicable vendor if they paid $600 or more in a calendar year for services by someone not a parish employee or for payments to an attorney. The form is due January 31 for the recipient copies and the IRS.",{"name":130,"@type":121,"acceptedAnswer":131},"When is Form 1099-NEC not required?",{"text":132,"@type":124},"Form 1099-NEC is not required for payments to a corporation, including certain LLCs treated as C or S corporations, and for payments to tax-exempt organizations. However, the corporation exception does not apply to payments for legal services, so 1099-NEC is required for $600+ legal services.","https://schema.org",{"og:url":95,"og:type":135,"og:title":59,"og:site_name":106,"og:description":60},"article",{"robots":137,"canonical":95},"index,follow",{"doc_id":55,"site_id":70},1790129759]