Forms 1099 and 1096 (U.S.)

Businesses in the United States are required by law to report payment of certain types of non-employee income to federal agencies after the final payments have been processed for a tax year. This topic describes the information collected and purposes of Forms 1099 and 1096.

ProContractor includes support for the following forms:
  • Form 1099-NEC: Non-Employee Compensation
  • Form 1099-MISC: Miscellaneous Income
  • Form 1099-INT: Interest Income
  • Form 1096: Annual Summary and Transmittal of U.S. Information Returns

For steps on generating forms 1099 and 1096, see Generate Forms 1099 and 1096 (End-of-Year Vendor Tasks for the U.S.).

Form 1099-NEC: Non-Employee Compensation

Form 1099-NEC lists total payments made to non-employees. You are required to create a Form 1099-NEC for every vendor that meets the threshold established by the IRS. Follow IRS guidelines when determining the suitability and use of this form.
Note: You must use Aatrix if you need to file Forms 1099-NEC.
  • You can print and manually submit them for free.
  • If you enroll with Aatrix, you can file them electronically for a fee.

Form 1099-MISC: Miscellaneous Income

Form 1099-MISC lists total payments made to vendors, including payments for rent and royalties, payments made to physicians or other health and medical service providers, payments for services by nonemployees, gross proceeds payments to attorneys, and direct sales of consumer goods worth at least $5000. You are required to create a Form 1099-MISC for every vendor that meets the threshold established by the IRS. For each vendor that meets this threshold, you need to print five copies of Form 1099-MISC:

  • One copy for the Internal Revenue Service (IRS).
  • One copy for your records.
  • One copy for relevant state tax authority.
  • Two copies for the vendor.

Forms 1099-MISC must be given or mailed to all vendors by January 31. If you are filing paper copies of your Forms 1099-MISC with the IRS, you must submit them by the last day of February; if you are filing electronically, you must submit your forms by March 31.

Form 1099-INT: Interest Income

Form 1099-INT lists total payments made to vendors for interest. You are required to create a Form 1099-INT for every vendor that meets the threshold established by the IRS. For each vendor that meets this threshold, you need to print three copies of Form 1099-INT:

  • One copy for the Internal Revenue Service (IRS).

  • One copy for your records.

  • One copy for the vendor.

Forms 1099-INT must be given or mailed to all vendors by January 31. If you are filing paper copies of your Forms 1099-INT with the IRS, you must submit them by the last day of February; if you are filing electronically, you must submit your forms by March 31.

Form 1096: Annual Summary and Transmittal of U.S. Information Returns

Form 1096 serves as a cover sheet when you submit paper copies of Forms 1099 to the Internal Revenue Service (IRS). It includes the number of Forms 1099 to be submitted as well as total amounts reported on the forms.

Note: The current version of ProContractor does not support printing of Form 1096. However, you can print a report that contains the information you need to manually complete the form.