Employers and accountants: head to this article to learn about your options for downloading and distributing these forms.
At this time, we file Forms 1099-NEC regardless of the $600 threshold in order to provide contractors with the necessary forms to quickly and accurately file their personal tax return.
1099 availability and distribution
If you’re a contractor, copies of your Form 1099-NEC are made available mid-to-late January in your Gusto account. Gusto will fill out Box 1 (non-employee compensation), but there are several other boxes on the form—learn more about the form below.
While your Form 1099 will be available in your Gusto account, employers are still required to provide you with a physical copy of your 1099 (via mail or in-person) unless you've given them consent to provide it electronically only. Click the Manage your 1099 delivery preference dropdown below for more information.
Keep in mind: You’ll have access to your forms for up to 10 years, including Form 1099-NEC, as long as you have an email address connected to your Gusto account.
Your employer is required to provide you with a paper copy of your 1099, unless you go paperless and choose to receive electronic-only copies.
Changes to your delivery preference after Jan 16, 2024 won’t take effect until the following tax year (meaning, it’d be too late to change your preference for 2023 tax documents, but the preference will be set for next year).
Follow these steps to choose your preference:
Your 1099 will be available to view and download in the main Documents section of your account by mid-January, and your employer will provide your paper copy by Jan 31 (unless you went paperless).
Your delivery preference will be valid until you update it, or you leave the company.
Gusto does not currently support:
The descriptions below are simplified summaries, and there may be other factors to consider when filing out each box. Learn more in the detailed IRS guidelines for filling out Form 1099-NEC.
Keep in mind: Gusto reports all earnings as non-employee compensation in Box 1 of the 1099-NEC we’ve prepared.
Box 1: Non-employee compensation: any compensation paid to the contractor over $600 including fees, commissions, prizes, and awards for services.
Box 2: Gusto does not currently support this so the box will be left blank.
Box 3: Gusto does not currently support this so the box will be left blank.
Box 4: Federal income tax withheld during the year.
Box 5: State tax withheld during the year.
Box 6: The state abbreviation and state withholding account number (if applicable) of the company that is paying and utilizing the services of a contractor. This would only need to be reported if state income tax was withheld.
Box 7: State income paid to the contractor for the year.