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Question of the Week

Posted: Jun 2, 2022 | Author: Cornerstone Compliance Team
1099-NEC  C Corportation  compliance  S Corporation 

Question: Are we required to send a 1099-NEC (non-employee compensation) to a vendor that is a corporation?

Answer: No. You are not required to send a 1099-NEC to either a C or S corporation in most circumstances—the exceptions being certain situations that are not typically involved in credit union operations.

You do, however, need to send a 1099-NEC to LLCs, partnerships, and sole proprietors if the aggregate compensation paid to them in a year exceeds $600.

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