About
Foundational Principles In the Community Diversity, Equity & Inclusion Technical Excellence Alumni TIAG Membership
Careers
Why Cohen & Co Our Culture Total Rewards & Benefits Early Career Opportunities Experienced Opportunities Join Our Talent Community
Contact
Akron, OH Baltimore, MD Buffalo, NY Chicago, IL Cleveland, OH Deer Park, IL Denver, CO Detroit, MI Milwaukee, WI New York, NY Philadelphia, PA Pittsburgh, PA St. Clair Shores, MI Youngstown, OH
Client Portal
Services Industries Knowledge Center People

About Our Services

We offer tailored solutions — whether private company or owner; public or private fund, adviser or fund service provider; or Fortune 1000 enterprise. Learn how we can help you.

Find Services

Assurance Services

Employee Benefit Plan Audits Internal Controls Investment Company Audits Private Company Audits

Tax Services

Federal Tax Planning & Compliance High Net Worth & Wealth Transfer International Filings & Structuring Investment Company Tax State & Local Tax Tax Credits & Incentives Transaction Tax Planning

Advisory Services

Business Valuations Data & Insights Digital Finance Solutions IT Strategy & Implementation Litigation Support Services M&A Advisory Outsourced Accounting Solutions Transaction Services Turnaround & Restructuring

Our Industry Expertise

Our industry experience means you can find professionals who speak your language and bring earned insights to the table. Learn how we can help you.

Explore Industries

Key Industries

Digital Assets Investment Companies Manufacturing Private Companies Private Equity Real Estate & Construction Technology & Life Science
VIEW THE COMPLETE LIST

Knowledge Center

Our team wants to help your team stay up to date. Browse our thought leadership, events and news for insights and a point of view on business-critical topics.

Find Insights & Events

Insights

Browse valuable articles and publications our experts have written to help you and your organization answer key questions — and consider new ones.

Read Our Insights

Events

Join us in person and online for events that address timely topics and key business considerations.

Explore Our Events

News

Find out what is happening at Cohen & Co, from industry recognitions and growth updates, to where we are contributing to important media stories.

Read Our News
People
Foundational Principles In the Community Diversity, Equity & Inclusion Technical Excellence Alumni TIAG Membership
Why Cohen & Co Our Culture Total Rewards & Benefits Early Career Opportunities Experienced Opportunities Join Our Talent Community
Akron, OH Baltimore, MD Buffalo, NY Chicago, IL Cleveland, OH Deer Park, IL Denver, CO Detroit, MI Milwaukee, WI New York, NY Philadelphia, PA Pittsburgh, PA St. Clair Shores, MI Youngstown, OH
Client Portal
Back to Insights

The 3 Nonemployee Compensation Payments to Report on Form 1099-NEC Instead of 1099-MISC This Tax Season

by Laura White

January 05, 2021 Federal Tax Planning & Compliance

Form 1099-NEC is a new 2020 tax form most businesses will need to file by January 31, 2021. Used to report nonemployee compensation paid during 2020, the new form replaces the 1099-MISC previously used to report these payments.

What Type of Payments Can You Report on Form 1099-NEC?

Form 1099-NEC should be used to report the following kinds of payments made from your trade or business during 2020:

  1. For services performed by someone who is not your employee, and to whom you paid at least $600 (to be reported in box 1)
  2. For services rendered by an attorney, for which you paid at least $600 (to be reported in box 1)
  3. For federal tax withheld under the backup withholding rules, regardless of the amount of payment (to be reported in box 5).

What Payments Are NOT Reportable on Form 1099-NEC?

Personal payments are not reportable on Form 1099-NEC. Generally, payments made to a corporation also are not reportable here. However, note that if an attorney is set up as a corporation, this rule does not apply and you can report those payments on the form.

What is the Due Date for Filing Form 1099-NEC?

Form 1099-NEC is due to the recipient and the IRS by January 31, 2021. This filing date is earlier than that of the 2020 Form 1099-MISC. The IRS wants Form 1099-NEC filed at the same time as W-2s so they have most of the income that is being reported for individual tax returns by January 31, 2021. This will help the IRS verify the income of individuals earlier than it has been able to in the past.

>> Download 2020 Form 1099-NEC and the related instructions

Contact Laura White at lwhite@cohenco.com or a member of your service team to discuss this topic further.

Cohen & Co is not rendering legal, accounting or other professional advice. Information contained in this post is considered accurate as of the date of publishing. Any action taken based on information in this blog should be taken only after a detailed review of the specific facts, circumstances and current law.

About the Author

Laura White, CPA

Director, Cohen & Co Advisory, LLC
lwhite@cohenco.com
216.774.1178
Sign Up for Our Emails & Events

Receive insights from our specialists in a variety of areas and timely information on upcoming events directly to your inbox as they go live in our online Knowledge Center.

Subscribe Today
Top
Subscribe to our newsletter
About Contact Submit RFP Privacy Policy

"Cohen & Co" is the brand name under which Cohen & Company, Ltd. and Cohen & Co Advisory, LLC, and its subsidiary entities, provide professional services.

Cohen & Company, Ltd. and Cohen & Co Advisory, LLC practice in an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable law, regulations and professional standards.

Cohen & Company, Ltd. is a licensed independent CPA firm that provides attest services to its clients. Cohen & Co Advisory, LLC and its subsidiary entities provide tax, advisory and business consulting services to their clients and are not licensed CPA firms.

The entities operating under the Cohen & Co brand are independently owned and are not responsible for the services provided by any other entity operating under the Cohen & Co brand. Our use of terms such as “our firm,” “we,” “us” and other terms of similar import denote the alternative practice structure of Cohen & Company, Ltd. and Cohen & Co Advisory, LLC.

© 2025 Cohen & Co