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if you work as an independent contractor or a freelancer or maybe you hire them in your business form 1099 nec non-employee compensation is required by the irs to report payments made to non-employees including freelancers independent contractors and sole proprietors who provided a service during the tax year hi and welcome to my channel my name is lina im a cpa and in todays video i will walk you through everything you need to know about issuing a 1099 to your contractors please give this video a thumbs up and also subscribe to my channel so you dont miss out on future videos what is form 1099 nec form 1099 nac or non-employee compensation is part of the 1099 series of information returns you may have heard of 1099-b for broker-dealers or miscellaneous that is issued to report interest and income earned and 1099-g which stands for government and this is used for payments received from the government such as unemployment compensation for example the irs requires business owners to