Small Business Taxes

1099 Rules: What Small Business Owners Need to Know

Updated 2025-10-28

Who gets a 1099, which form to use, thresholds, deadlines, and penalties for non‑compliance.

  1. Who requires a 1099
  2. Which forms: 1099‑NEC vs 1099‑MISC
  3. Deadlines & penalties
  4. Tools & workflows

Who requires a 1099

Generally, payees who are non‑employees and not corporations, over the annual threshold, need a 1099. Always request a W‑9 up front.

Which forms: 1099‑NEC vs 1099‑MISC

Deadlines & penalties

Provide copies to recipients and file with the IRS by statutory dates to avoid tiered penalties.

Tools & workflows

Collect W‑9s at onboarding, track vendor totals, and e‑file through approved platforms.