---
title: "Freelancers, Vendors & Subcontractors: Who Gets a 1099?"
description: Learn who needs a 1099-NEC, key deadlines, and reporting rules for non-employees in your design, architecture, or engineering firm. Ensure compliance and simplify your year-end process.
---

[Accounting Frontier Blog ](https://blog.accountingfrontier.com)

# [Freelancers, Vendors & Subcontractors: Who Gets a 1099?](https://blog.accountingfrontier.com/freelancers-vendors-subcontractors-who-gets-a-1099)

 Written by [Phil Kirkendall](https://blog.accountingfrontier.com/author/phil-kirkendall) | Nov 26, 2025 2:30:00 PM

 

If you’ve paid **$600 or more** to a non‑employee this year for services in your business, you probably owe them a Form **1099‑NEC**. That includes many of the outside pros creative firms rely on—think bookkeepers, renderers, installers, architects, and engineers you subcontract.

> **Fast answer**  
> Send a **1099‑NEC** when you’ve paid **$600+ for services** (cash, check, ACH) to **individuals, partnerships, or LLCs taxed as individuals/partnerships**. **Don’t** send a 1099‑NEC for payments you made **by credit card or payment apps**—those are reported by the processor on **1099‑K**. Most **C‑corps and S‑corps** are exempt (attorneys are a big exception). Key due date: **January 31** for 1099‑NEC to both the contractor and the IRS. 

## Who *does* get a 1099‑NEC?

You generally must file Form 1099‑NEC when all four are true:

1) the payee isn’t your employee; 2) you paid for **services** in your trade or business; 3) the payee is an **individual, partnership, estate, or sometimes a corporation**; and 4) total payments reached **$600+** in the calendar year. 

Common recipients in our world:

- **Freelancers and independent contractors** (rendering, drafting, styling, photography, social media). 
- **Subcontractors** you engaged on projects (installers, millwork shops, trade specialists).
- **Sole proprietors** and **single‑member LLCs (disregarded entities)**—you’ll know from their **Form W‑9**; disregarded LLCs report the **owner’s** classification. <https://www.irs.gov/instructions/iw9>
- **Partnerships** (including multi‑member LLCs taxed as partnerships). 
- **Attorneys’ fees** (yes, even if the law firm is a corporation). Report **fees** on 1099‑NEC. (If you paid **gross proceeds** in a legal settlement, that’s **1099‑MISC box 10**.) 

> **Design & A/E tip:** The IRS examples for 1099‑NEC explicitly include **architects and engineers**—so if you hired them as non‑employees, they’re in scope. 

## Who *doesn’t* get a 1099‑NEC? (Common exceptions)

- **Most corporations (C‑corp or S‑corp)**—you’ll see their status on Line 3 of the W‑9. (But note the attorney exception above.) 
- **Payments made by credit card or via third‑party networks** (e.g., PayPal “Goods & Services,” Stripe, Square). Your processor files **1099‑K**; you **should not** also file 1099‑NEC for those payments. 
- **Payments for merchandise or goods only** (not services). 
- **W‑2 employees** (use Form W‑2, not 1099). 
- **Certain corporate payments that belong on 1099‑MISC** (e.g., medical/health care payments, fish purchases for resale, gross proceeds to attorneys). 
- **Non‑U.S. persons** paid for services—those are typically reported on **Form 1042‑S** instead. 

## The payment‑method rule (avoids double reporting)

If you paid a contractor via **credit card or a payment app**, the **processor** reports on **1099‑K** under IRC §6050W. You **don’t** issue a 1099‑NEC for those card/app payments. This is true even if the contractor is otherwise 1099‑eligible. 

## Deadlines you can’t miss

- **Form 1099‑NEC:** **Due January 31** to the recipient **and** the IRS (paper or e‑file). For 2025 payments, that’s **Monday, February 2, 2026** since Jan 31 falls on a weekend. 
- **Form 1099‑MISC:** Furnish to recipients by **Jan 31**; file with IRS by **Feb 28** (paper) or **Mar 31** (e‑file). 

Want a reminder? [Sign up for smart alerts here](https://www.accountingfrontier.com/accounting-alerts).

## Collect W‑9s now (and why it matters)

Ask every new vendor/contractor for **Form W‑9** **before** you pay them. It tells you their **legal name**, **address**, **TIN**, and **tax classification** (which drives whether they’re 1099‑reportable). Missing or incorrect TINs can trigger **24% backup withholding**—no one wants that surprise. 

## How to tag 1099 vendors in **Studio Designer** (so January is painless)

1. **Create/Update the vendor record**
   
     - In the vendor’s **Address/Codes** area, set **“1099 = Yes/No”** and enter the **Federal ID** (EIN/SSN). Save. 
2. Review totals before year‑end

- - Run the **1099 Data / 1099 Summary** reports to confirm who will receive a form and the amounts. (Ensure staff who run reports have the **Reports > Accounting** permission.) 

## Edge cases we see a lot

- **Single‑member LLCs:** If the W‑9 shows a **disregarded entity**, treat the vendor based on the **owner’s classification**—often reportable. 
- **Parts & materials:** If parts are **incidental** to the service (e.g., an installer bills for labor + a few anchors), the **full amount** still belongs on 1099‑NEC. 
- **ACH vs. apps:** **ACH** you initiate from your bank counts like cash/check (you file 1099‑NEC). Card/app payments fall under **1099‑K**. 

## Year‑end checklist (save this)

- ✅ **Confirm vendor list** and tag 1099 status in Studio Designer. 
- ✅ **Collect missing W‑9s**; TIN‑match if you e‑file. 
- ✅ **Reconcile totals** by payment type (separate card/app payments).
- ✅ **Prepare 1099‑NEC** for cash/check/ACH services of **$600+**. 
- ✅ **Hit January 31** (NEC) and **Feb/Mar** (MISC) deadlines.

This article is written for **interior design, architecture, and engineering firms**—the exact market we serve—and assumes you’re working in **Studio Designer** for day‑to‑day accounting.

### Need an extra set of eyes?

If you’d like Accounting Frontier to **audit your vendor list**, clean up tags in **Studio Designer**, and prep your **1099 run** before January, we can do it. We’ll follow the IRS rules above and organize your system so next year is even easier.

*This post is intended for general informational purposes only and should not be construed as tax, legal, or financial advice. Your circumstances may be unique, so please consult a qualified tax professional regarding your specific situation.*

[View full post](https://blog.accountingfrontier.com/freelancers-vendors-subcontractors-who-gets-a-1099)

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