e-filing 1099s made easy

Contractors keep your business flexible, but come tax time, they can feel like a drag. With Gusto, you can file 1099-NECs online without lifting a finger. Save time and money—and make tax time a breeze—with Gusto’s integrated contractor payments and automated 1099 e-file service.

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Rocky Mountain Clay,

Gusto customer

Worry-free contractor payments

Paying your contractors is as easy as pushing a button. Whether domestic or international, by check or direct deposit, Gusto keeps your payroll all in one place.

No muss, no fuss 1099-NECs

Gusto provides electronic 1099s to all your domestic contractors, and we’ll e-file 1099-NEC forms to federal and state agencies at the end of the year—at no extra cost.

Tax time has never been easier

With Gusto’s automated 1099 online filing, you can rest easy knowing your contractors have what they need while your business stays compliant.

90% of Gusto businesses find it easy to manage and pay contractors domestically and internationally

– Techvalidate survey, 2022

“I appreciate being able to have the contractors fill out their own paperwork and that Gusto handles all tax and tax reporting.”

– Miranda Johns, CEO of Hope in Healing LLC

83% of our businesses feel Gusto helps them stay on top of compliance and changing tax requirements.

– Techvalidate survey, 2022

Contractor self-onboarding

Grow your business without growing your admin.

With self-onboarding, Gusto makes it easier than ever to hire, pay, and manage your contractors. Invite new freelancers to create an account, upload their own W-9 and bank account information, and opt-in to electronic 1099 delivery. Your contractors will love knowing where to find all their info come tax time, and you can rest easy knowing Gusto will handle the hard stuff.

Uncorked,

Gusto customer

Compliance made simple

Stay on top of changing tax requirements.

With state and federal tax requirements changing every year, staying compliant can get complex. Gusto’s 1099 e-file service takes the guesswork out of tax time. We’ll make sure your contractors get their 1099s on time, and that state and federal agencies have everything they need—all at no extra cost to you.

Effortless e-filing

Hands-free e-filing for the win.

Tax time is busy enough as it is. Paying your contractors with Gusto means one less thing on your plate. We’ll e-file your 1099s with federal and state agencies, and we’ll send electronic 1099s to any contractors who’ve opted-in to paperless delivery. Need to send paper copies? We can help with that too.

What is a 1099-NEC?

1099 NEC is a nonemployee compensation form used by the IRS to report payments made to independent contractors. The IRS requires the form to be filed for any contractors, freelancers, gig workers, digital nomads, and solopreneurs who received more than $600 in payments from your business throughout the year. A 1099- NEC must also be sent directly to your contractors by January 31.

What’s the difference between 1099-NEC and 1099-MISC?

Beginning in 2020, the IRS reintroduced the 1099-NEC form to report nonemployee compensation paid to independent contractors throughout the tax year. This includes any payments for work done in the regular course of business to anyone who is not a W-2 employee. The 1099-MISC is now reserved for less common types of payments such as royalties, rents, prizes and awards, nonqualified deferred compensation, and a few other things.

Who gets a 1099-NEC?

A 1099-NEC is used exclusively for nonemployees. This means any contractors, freelancers, gig workers, digital nomads, and solopreneurs who did work for you throughout the year. Regular employee compensation is reported on form W-2, so it’s important to know which type of worker you’ve been paying.

Does Gusto e-file 1099-NECs?

Absolutely. Gusto will automatically e-file 1099-NEC to both state and federal tax agencies for any contractors you paid through Gusto throughout the year—whether or not they reach the $600 threshold required by the IRS.

Can I file 1099-NEC electronically?

You sure can. Gusto will automatically e-file 1099-NECs to both state and federal tax agencies for any contractors you paid through Gusto throughout the year. However, paper copies of 1099s must still be mailed directly to your contractors by January 31, unless they have specifically opted out. Gusto can mail these forms for you, or we can help you download, print, and send them out yourself. In addition, we’ll provide electronic copies for any contractors who’ve opted-in to paperless delivery.

How much does it cost to e-file 1099-NEC?

1099 e-filing is free when you manage your contractors with Gusto. We charge just $6 a month per contractor—and you only pay for the months you pay them.

What’s the deadline for electronically filing 1099-NEC?

The IRS requires 1099-NECs to be filed by January 31 for the previous tax year. So for the 2022 tax year, you need to file your 1099s by January 31, 2023. This is also the deadline to send out any 1099-NECs directly to your contractors (whether paper or electronic).

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