Correct a 1099-NEC or stop a filing (for admins)
This article is for admins who need to correct a 1099-NEC in Gusto. Need to fix a W-2 instead? See the W-2 correction guide.
We'll email you when draft 1099-NECs are ready to review. If something looks wrong on a contractor's form, you can fix it while it's still a draft — or submit a correction after it's been filed. We don't charge extra for 1099-NEC corrections.
Note: Draft forms update every 24–48 hours.
Once 1099-NECs are finalized, you need to distribute them to your contractors. Contractors can view their 1099-NEC in Gusto on their own.
Note: We don't support corrections to Form 1096 (the cover page for all 1099s).
Can't find your issue below? Contact us by signing in to Gusto and clicking the help icon 
in the top-right corner.
When you pay contractors for work, you may need to file a 1099-NEC with the IRS. Filing keeps you compliant and helps contractors report their income correctly.
The $600 rule
File a 1099-NEC if you pay a contractor $600 or more in a calendar year. This applies to most contract work — like consulting, cleaning, or repairs.
Heads up: Starting in 2026 (for forms filed in January 2027), the threshold goes up to $2,000.
Who gets a 1099-NEC
You need to file a 1099-NEC for these contractor types:
Individuals (sole proprietors)
Partnerships
LLCs taxed as individuals or partnerships
Attorneys (even if they're incorporated)
Medical and healthcare providers
You do not need to file for C-corporations or S-corporations.
What payments to report
Report payments for services rendered to your business, including commissions, fees, and prizes or awards for services. Do not report payments for goods or products, or payments to corporations (unless they're attorneys or healthcare providers).
Filing deadlines
Give contractors their 1099-NEC by February 2. We also file with the IRS by February 2 on your behalf.
Payments under $600
You don't have to file for payments under $600 — but you can. Voluntary filing helps contractors prove their income and keeps your records clean.
State rules
Most states follow the federal $600 rule. Some states (like Vermont) require a 1099-NEC for any amount if you withhold state tax. Contact your state tax agency to confirm what applies to you.
Quick reference
Who gets a 1099-NEC?
When to file
What to report
Individuals, partnerships, LLCs (not taxed as corps)
$600+ in a year
Services, fees, commissions, prizes, awards
Corporations (except attorneys/healthcare)
Not required
Not required
Attorneys (even if incorporated)
$600+
Legal services
Payments under $600
Not required (optional)
Optional
Your next steps depend on whether the form is still a draft or already filed.
If the form is still a draft (not yet filed):
We'll update the draft form within 24–48 hours.
If the form doesn't update within two business days, contact us through the help icon in the top-right corner of Gusto.
If the form is already filed (final):
Contact us to request a corrected Form 1099-NEC. Reach us through the help icon in the top-right corner of Gusto.
See How corrected 1099s are delivered below to understand what happens after a correction is filed.
Your next steps depend on whether the form is still a draft or already filed.
If the form is still a draft (not yet filed):
Record or adjust payments made outside of Gusto — this updates the total automatically.
You can also pay contractors through Gusto or adjust prior Gusto payments if something was entered incorrectly.
If the form is already filed (final):
You can correct the payment amount and we'll file a corrected 1099 with the IRS. Follow the steps below.
Steps to correct Boxes 1 and 7 on a filed 1099-NEC
Go to Taxes & Compliance.
Click Tax Documents.
Click the 1099s tab.
Next to Form 1099: 20XX, click the three-dot Actions menu.
Click Submit a correction.
Choose the contractor.
Enter the correct payment amounts — this updates Boxes 1 and 7.
To remove a state: Enter $0 as the corrected state income amount.
To add a state: Click Add a state and enter the income amount.
Review the corrected total in Box 1.
Click Save & continue.
Review all the information, then submit. We'll file the corrected form with the IRS within 1–2 weeks. You can cancel the correction anytime before we officially file it.
Important: Some states require you to file corrected 1099s with them directly. We only file corrections with the IRS. Contact your state to find out if you need to file separately.
Choose whether to send your contractor an email letting them know their corrected 1099 is ready in Gusto. You'll always get a notification — this step decides if your contractor does too.
Click Submit correction.
Download the form and share it with your contractor if needed. They can also find the corrected 1099 in Documents in their Gusto account.
Ask your contractor to wait to file their personal taxes until we officially submit the corrected form to the IRS.
Cancel a corrected 1099-NEC before it's filed
You can cancel a pending correction anytime before we file it with the IRS. Here's how:
Go to People.
Find the contractor. If you don't see them, click Show dismissed people.
Go to Documents on their profile.
Next to Form 1099 (Corrected): 20XX, click the three-dot Actions menu.
Click Cancel correction.
You can't undo this. If amounts are still wrong, you'll need to start a new correction.
Click Yes, cancel this correction.
Once we file a corrected 1099-NEC with the IRS, here's how you and your contractor access it.
Where to find the corrected form
The corrected 1099-NEC is available digitally in Gusto — it is not mailed. Both you and your contractor access it through your Gusto accounts:
Admins: Find it under Taxes & Compliance > Tax Documents > 1099s.
Contractors: Find it under Documents in their Gusto account.
Email notifications
When the corrected form is ready, we automatically send you (the admin) an email notification. During the correction process, you also choose whether your contractor receives a notification too.
Note: Remind your contractor to wait to file their personal taxes until the corrected form is officially submitted to the IRS. Filing too early could cause issues with their return.
We don't file corrected 1099s for address changes. A contractor's address doesn't affect their taxes or our 1099-NEC filings, so no correction is required.
To keep future forms accurate, update the contractor's address in Gusto as an admin — or have them update it themselves.
Before stopping a filing, make sure a 1099-NEC isn't actually required for that contractor. Once you've confirmed, follow the steps below.
Important: This setting stays in place until you change it. If you turn off filing for a contractor, it stays off in future years. You can update it anytime before the mid-January filing deadline.
Option 1: Turn off filing through Manage 1099 Filing
Go to Taxes & Compliance.
Click Tax Documents.
Click the 1099s tab.
Click Manage 1099 filing.
Under the Status column, toggle filing on or off for each contractor. To update multiple at once, check the boxes next to their names and use the Actions button.
Option 2: Turn off filing from the 1099 forms list (available mid-December)
When draft 1099s are available in mid-December, you can stop a filing directly from the forms list:
Go to Taxes & Compliance.
Click Tax Documents.
Click the 1099s tab.
In the forms table, click the three-dot Actions menu next to the contractor.
Click Stop filing or Start filing based on the current status.
If you don't see the option to turn off filings in your account, contact us through the help icon in the top-right corner of Gusto and let us know which contractors to exclude.
The deadline to enter historical contractor payments for the previous year is in early January. We send admins reminders about this deadline at the end of the calendar year.
Note: Entering historical payments made outside of Gusto alone won’t create a 1099. You also need to process at least one payment through Gusto before the end-of-year deadline.
If we did not create an original 1099 before the deadline passed, you'll need to file that 1099 outside of Gusto.