If a contractor’s 1099-NEC looks incorrect, you can take early action in Gusto to help update the form (while still a draft) or speed up the time to getting a corrected 1099 once it's final. Drafts 1099s update every 24 to 48 hours and there is no additional fee for Gusto to correct a 1099-NEC.
If your issue is not listed below, contact us from the Help section of your account to detail what needs correcting (or the Dedicated support section for Concierge and Select customers).
Corrections to Form 1096 (cover page for Form 1099) are not supported at this time.
Select the 1099 issue from the dropdowns below to get instructions for what to do next.
If you've already paid a domestic contractor outside of Gusto, you can still add the payment to Gusto for reporting purposes.
To do so, head to this article and follow the steps in the dropdown titled Record or adjust a historical contractor payment processed outside of Gusto.
If Form 1099 is still a draft (meaning it hasn’t yet been filed) in Gusto, making updates to the name, SSN, or EIN will automatically update the contractor’s draft Form 1099, within 24-48 hours.
If the forms have already been finalized, administrators will need to:
If Form 1099-NEC is still a draft in Gusto
Use the dropdown above titled "Record or adjust a historical contractor payment processed outside of Gusto" to get instructions for how to update the annual payment total.
If Form 1099-NEC is finalized
Administrators can still correct year-to-date contractor payment amounts on Form 1099-NEC and generate a corrected 1099 automatically.
Download the form and give it to your contractor. If they have a Gusto account, they can access the corrected Form 1099 in their Documents section.
We recommend advising your contractor to wait to file their personal tax returns until Gusto has officially filed the corrected form with the IRS.
If you need to file a corrected Form 1099-NEC with a state that requires them to be filed, contact the states directly to learn how to file the form outside of Gusto.
Contact us from the Help section of your account and let us know if you’d like us to stop one or more 1099 filings.
We’ll need the name(s) of the contractor(s) you’d like to stop the filing(s) for.
If you're looking for help with a W-2 correction instead, check out this article.