Businesses should use Form 1099-NEC, “Nonemployee Compensation,” to report payments of $600 or more to nonemployees during 2021. Be aware that such payments could be subject to backup withholding in certain cases. Payers of nonemployee compensation during 2021 generally are required to file these forms by Jan. 31, 2022. Backup withholding could apply if the recipient of compensation hasn’t provided a Taxpayer Identification Number (TIN) to the payer or if the IRS notifies a payer that a TIN doesn’t match the name in IRS records. A TIN can be a Social Security, employer identification or individual taxpayer identification number. To learn more: 


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