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Get a corrected Form 1099-NEC

Administrators can correct year-to-date contractor payment amounts on Form 1099-NEC. Corrections to Form 1096 (cover page for Form 1099) are not supported at this time.

Generate a corrected Form 1099-NEC

  1. Click the Company section and select Documents.
  2. Click the Company tab.
  3. Next to “Form 1099: 20XX”, click the three-dot Actions menu.
  4. Click Submit a correction.
  5. Select the contractor who needs a corrected Form 1099.
  6. Enter the new income amount(s) to record on the corrected form
    • This will correct Boxes 1 and 7 on Form 1099-NEC. 
    • To remove an existing state, put $0 as the “Corrected state income amount.”
    • To add a state, click Add a state and enter the income amount.
  7. Review the total corrected non-employee compensation (Box 1 total).
  8. Click Save & continue to review.
  9. Review all information. 
    • Once the correction is submitted, we’ll generate a corrected Form 1099 for you to download and give to your contractor.
      • We’ll file the new form with the IRS in 1-2 weeks. You’re able to cancel the correction up until the time the form is officially filed.
      • Important: Some state agencies require you to file corrected From 1099s with them directly (in addition to the filing Gusto submits to the IRS). Gusto doesn’t file corrected Form 1099s to state agencies on your behalf–contact the states directly to learn how to file the form outside of Gusto.
  10. Let us know if you want us to notify your contractor that a corrected Form 1099 is in their Gusto account.
  11. Click Submit correction.

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.

Cancel a pending corrected Form 1099-NEC

  1. Click the People section and select Team members.
  2. Locate the contractor profile you need to cancel the correction for.
    • Pro tip: if you don’t see them listed in the active contractors, click Show dismissed people.
  3. Go to the Documents tab of the contractor’s profile.
  4. Next to “Form 1099 (Corrected): 20XX”, click the three-dot Actions menu.
  5. Click Cancel correction.
    • This action cannot be undone. You’ll need to initiate a new correction if amounts are still incorrect.
  6. Click Yes, Cancel this correction.

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