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Understand Form 1099-NEC

Gusto files 1099-NEC forms to the IRS and to the required states for all domestic contractors who have been paid through Gusto within the calendar year. All earnings are reported in Box 1 of the 1099-NEC as non-employee compensation. Here's how to access your 1099-NEC.

  • At this time, we file Forms 1099 regardless of the $600 threshold in order to provide contractors with the necessary forms to quickly and accurately file their personal tax return.
  • If you’re an admin and don’t want Gusto to file 1099 forms, you can let us know when completing your end-of-year tasks in the Taxes & Compliance section or by contacting us from the Help section of your Gusto account.

Gusto does not currently support: 

  • 1099-NEC filings to locals, where applicable 
  • Back-up withholding, if required for your contractor 
  • Contractor withholding, if required by the state (i.e. for higher paid contractors or non-resident contractors)
  • International contractor withholding or reporting.

Understand Form 1099-NEC

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. 

  • Gusto does not currently support this so the box will be left blank.

Box 5: State tax withheld during the year.

  • Gusto does not currently support this so the box will be left blank.

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.

  •  Gusto will list the applicable state abbreviation(s).

Box 7: State income paid to the contractor for the year.  

Payroll, benefits, HR and more.