Important: This article is not tax or legal advice. You are responsible for deciding which payments are reportable, how vendors are classified, and which federal and state filings are required. Consult your tax advisor and the current IRS instructions for Forms 1099-MISC and 1099-NEC here.
The IRS requires payers to report various types of non-employee compensation and federal income tax withholdings on Form 1099. There are two common 1099 forms used in the entertainment industry: 1099-NEC and 1099-MISC.
Summary of key IRS requirements (see IRS for complete rules):
1099-NEC
Reports nonemployee compensation for services paid to independent contracts and other vendors.
$2,000 reporting threshold for most categories for tax year 2026.
Required if federal income tax was withheld regardless of the total payment amount.
Generally not required for payments to corporations, including LLCs taxed as corporations.
Notable exception: attorneys' fees (legal services) are reportable even when paid to a corporation.
For tax year 2026, the IRS renumbered box 1 as box 1a (nonemployee compensation) and added boxes for cash tips (1b), Treasury Tipped Occupation Codes (1c), and overtime compensation (1d).*
February 1, 2027 is the deadline for tax year 2026 to furnish Form 1099-NEC to recipients and file it with the IRS (January 31 falls on a Sunday).
1099-MISC
Reports miscellaneous payments such as rents, royalties, prizes and awards, and medical and health care payments.
$2,000 reporting threshold for most categories for tax year 2026.
Required if federal income tax was withheld regardless of the total payment amount.
Generally not required for payments to corporations, including LLCs taxed as corporations.
Notable exceptions: medical and health care payments are reportable even when paid to a corporation.
For tax year 2026, the IRS added boxes for cash tips (13a), Treasury Tipped Occupation Codes (13b), and overtime compensation (14).*
Tax year 2026 deadlines: February 1, 2027 to furnish recipient copies; March 1, 2027 to file paper forms with the IRS; and March 31, 2027 to file electronically with the IRS.
If you file 10 or more information returns of any type in total for a calendar year, you must file electronically with the IRS.
State filing thresholds and deadlines may differ from federal rules. Check each state's requirements separately.
Please visit the IRS website for detailed instructions here.
A few tips when reviewing AP Vendor 1099s:
Verify the accuracy of the vendor name, address, tax status, and tax ID number using the vendor provided W-9.
Review account codes that commonly require 1099 reporting, such as legal fees and equipment rentals, to identify vendors that should have 1099 tags.
Check the AP Clearing account on the Trial Balance; only transactions paid in the selected tax year should be 1099ed.
For guidance on the AP Vendor 1099 process in GreenSlate, please visit the Process 1099s section of the GreenSlate Help Center here.
Details about GreenSlate's optional 1099 e-filing service will be posted in the Process 1099s section of the Help Center in November. Check back in to see how we can help you!
*Note: GreenSlate has updated its 1099 box options to reflect the 2026 IRS forms. Overtime and tip reporting on Forms 1099 applies only in limited circumstances. To enable the Cash tips or Overtime compensation boxes for your project, contact [email protected]. For your security, do not send W-9s, Tax ID numbers, or other sensitive vendor data by email.