If you pay other people to help on your jobs — a sub for the drywall, a helper you pay by the day, an electrician you bring in — you may need to send them a 1099-NEC after the year ends. Getting the paperwork now is a lot easier than chasing people in January.
What changed for 2026
For payments made in 2026, the federal reporting threshold for Form 1099-NEC went up from $600 to $2,000 per payee for the year. Payments made in 2025 still used the old $600 line. Some states set their own threshold, so check yours too.
Who usually gets one
- Individuals and sole proprietors you paid for services, at or above the threshold for the year.
- Partnerships and most LLCs that are not taxed as corporations.
- Usually not corporations. C and S corporations are generally exempt, with some exceptions. The W-9 tells you which they are.
Collect a W-9 before the first payment
The W-9 gives you the sub's legal name, business type, address, and tax ID. Make it part of hiring: no W-9, no first check. Subs expect it, and it is far easier to ask before you owe them money than after.
Log every payment as you make it
Keep a simple record of who you paid, how much, and when. At the end of the year you add it up per sub and you are done. If you wait, you end up digging through bank statements and guessing which payments were for which person.
The January deadline
1099-NEC forms are generally due to recipients and the IRS by January 31. That is a short window after the holidays, which is why the work belongs in October and November.
On the EZ Invoices Business plan, the Tax Center stores each sub's W-9, keeps a log of what you paid them, and builds a print-ready 1099-NEC summary for your accountant. It is not e-filing, and this post is general information, not tax advice.
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