Form 1099-MISC is used in the reporting of payments that are not subject to self-employment tax – things like rents and prizes. This article is for business owners or payroll managers who want to understand the difference between IRS forms 1099-MISC and 1099-NEC.įorm 1099 is an IRS form used to report the payment of certain expenses annually to both the recipient and the IRS.Form 1099-NEC is for reporting non-employee compensation that is usually subject to the self-employment tax.The 1099-MISC is used to report payments not subject to self-employment tax.w-9The IRS uses both the 1099-MISC and 1099-NEC to report taxable payments made to non-employees.
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