1099 Contractor
Accounting & Bookkeeping Glossary
Definition
A 1099 contractor (independent contractor) is someone who performs work for your business but isn't an employee. You don't withhold taxes from their payments, but you must issue a 1099-NEC form if you pay them $600 or more in a year. Misclassifying employees as contractors is one of the most common (and costly) compliance mistakes businesses make.
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