year-end compliance

1099-NEC vs 1099-MISC: Which Form for Which Payment in Construction

Since 2020, the IRS split the old 1099-MISC into two forms: 1099-NEC for nonemployee compensation, 1099-MISC for everything else. For construction AP, most subcontractor payments now go on 1099-NEC, while rent, legal settlements, and certain awards go on 1099-MISC. Getting the forms right matters at year-end; the deadlines and penalties differ between them.