If you’re an accountant looking for all-client form packages, head to this article for more information.
Employers are required to distribute Form 1099-NECs to their independent contractors each year by the end of January.
There are several ways employers can distribute the forms—regardless of which distribution option you choose, Gusto will still send emails to contractors letting them know that copies of their 1099s can be accessed in their account.
Your distribution options:
Once Form 1099-NEC is available, Gusto will email your contractors letting them know how to access the form in their Gusto account.
At this time, Gusto files 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.
Before distributing forms to your contractors, verify that all information appears accurate. If anything looks wrong, check out our 1099-NEC correction guidance article and/or contact us from the Help section of your account.
Gusto sends all of the required federal, state, and local filings of Forms 1099-NEC directly to tax agencies on your behalf.
Note: Cover sheet Form 1096 is only required to be filed to the Internal Revenue Service (IRS) along with paper copies of Forms 1099—because Gusto files Forms 1099 electronically to the IRS, we do not file Form 1096.
You don’t need any special paper stock when distributing forms to your contractors.
Gusto can mail your Forms 1099-NEC and corrected Forms 1099-NEC (if applicable) directly to your contractors for just $3 per person—mailing fees will be added to your monthly invoice.
To have Gusto mail forms to one or more of your team members:
We’ll send all original Forms 1099 and all corrected Forms 1099–this includes any and all corrected Form 1099s generated after the original Form 1099.
Download a mail-friendly packet of all your contractors’ Forms 1099. This specific packet does not include the employer-copy of Forms 1099. To download a full packet that includes the employer copy for records, follow the instructions in the dropdown below.
Get a PDF bundle for all contractors’ Form 1099s, including employer copies, and hand them out in person (if needed).
If only a few of your contractors need paper 1099s, you can also download specific contractor’s individual Form 1099s from their profile. To do so:
You’re required to distribute paper copies of your teams’ 1099s unless they’ve given consent for electronic distribution.
Forms will be available to distribute by Jan 20, and the deadline to distribute is Jan 31.
To check and see who has provided consent for electronic distribution in Gusto, follow these steps:
The steps to correct a 1099-NEC are different based on whether the form is still a draft, or if it's been finalized (filed).
Head to this article to learn how to correct a Form 1099-NEC (totals, names, SSNs, etc) or let us know you don't want us to file it.
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.
If your contractors are looking for help accessing their 1099s, send them to this article.