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Tracking Contractor Compensation

Beginning in 2020, contractor compensation is reported through form 1099-NEC. This is a change from when non employee compensation was reported on 1099-MISC.

Setting up contractors

Contractor compensation is accumulated when the contractor is included in a payroll run. If this contractor is also setup as a vendor, amounts paid to the vendor through checks, cash and cards will not be included in the 1099-NEC.