Which IRS form is often used to report total nonemployee compensation paid to a gig worker?
Answer
1099-NEC
Since taxes are not automatically withheld from payments made to gig workers, platforms frequently use specific forms to report annual earnings to both the worker and the IRS. The Form 1099-NEC (Nonemployee Compensation) is one of the primary documents used for this purpose, along with Form 1099-K, detailing the total amount paid throughout the year. This income verification is crucial for the worker when filing their self-assessed tax return, unlike W-2 forms used for traditional employees where withholding is automatic.
Related Questions
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