A contractor pays an independent subcontractor $4,500 during the calendar year for installation work. Which tax form must the contractor issue to that subcontractor?
Explanation
Payments for services to someone who is not an employee are reported on Form 1099-NEC once they reach the annual threshold, which is $2,000 for tax year 2026; the $600 figure applied through tax year 2025. At $4,500 the payment is well over the line either way. A W-2 goes only to an employee on payroll. A W-9 is collected from the payee to get their taxpayer identification number and is never issued to them. Form 941 is the employer's own quarterly payroll return and is filed with the IRS rather than given to a payee.
Law Reference: IRC §6041A; IRS Instructions for Forms 1099-MISC and 1099-NEC (2026)This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
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