Which vendors get a 1099, and what's the difference between 1099-NEC and 1099-MISC?

Reportable: services (NEC), rent (MISC box 1), royalties, prizes, medical and health care payments, and attorney payments. Not reportable: merchandise and goods, freight, utilities generally, and payments to most corporations. Mixed invoices: where services and goods are separately stated, report the services portion; where parts are incidental to a service (the plumber's materials), reporting the full payment is the common conservative practice.

The long-standing threshold was $600 per payee per year for both NEC and MISC categories. Legislation enacted in 2025 raised it to $2,000 for payments made beginning in calendar 2026, with inflation indexing afterward - so the threshold depends on which payment year you're filing for. Confirm the current-year figure against IRS instructions before setting your accrual and tracking logic.

The IRS revived Form 1099-NEC for tax year 2020, splitting nonemployee compensation out of the 1099-MISC (where it had been box 7) largely because of the divergent filing deadlines.

Payments to C and S corporations are generally exempt - except attorney fees and gross proceeds (reportable regardless of incorporation) and medical/health care payments to corporations. "They're a corporation" is only a defense if the W-9 on file says so.

No - payments made by credit card or third-party settlement networks are reported by the processor on Form 1099-K, not by you. Exclude card-paid amounts from your 1099 totals to avoid double reporting; this is a common overstatement error.

Simple decision tree from the classification box: Individual/sole proprietor/single-member LLC -> reportable. Partnership or LLC taxed as partnership -> reportable. C corp or S corp (including LLCs electing corporate treatment) -> exempt, except attorneys/medical. Set the flag and default box at onboarding so payments accumulate correctly all year.

Rent -> box 1; royalties -> box 2; other income -> box 3; medical/health care -> box 6; gross proceeds to attorneys -> box 10 (attorney fees for services go on the NEC instead). Box mapping belongs on the vendor record, not in someone's January memory.

If the invoice separately states them, report services; if it's bundled or the goods are incidental to the service, the conservative and common answer is report the whole payment. Coding the split at invoice time beats reconstructing it at year-end.

Depends on its tax classification, which is exactly what the W-9 box tells you: disregarded or partnership-taxed -> yes; corporate-electing -> generally no. "LLC" alone answers nothing.

If the contractor substantiates expenses under accountable-plan-style documentation and you reimburse separately, reimbursements are commonly excluded; lump-sum or unsubstantiated payments are reportable in full. Document the practice and apply it consistently.

No - payees who've documented foreign status on a valid W-8 fall outside the 1099 regime; US-source payments to them are governed by chapter 3 withholding and reported on Form 1042-S instead.

Tiered per-form penalties that grow with lateness - roughly $60 per form if corrected within 30 days, around $130 by August 1, and $330+ after that, with separate counting for the IRS copy and payee copy (amounts adjust annually). Intentional disregard carries a much higher per-form penalty with no cap.

Stampli supports 1099 readiness where it's actually won - at onboarding and in the data. W-9s are collected through the vendor portal and live on the record, 1099-relevant vendor data stays synchronized with the ERP as the source of truth, and vendor payment history is visible in one place, so January is a verification exercise instead of an archaeology project.