This form is the most common 1099 form reported in the US. If your business pays any independent contractors, freelancers, or other non-employees an amount of over $600 for services rendered during the tax year, your business will need to send a 1099-NEC to that taxpayer.

This rule applies to everyone that was paid by the business and is not considered an employee. Due to this, it is vital for companies to obtain accurate and complete W9s from any vendors, independent contractors, or freelancers that are being used as soon as possible.