Business FinancesQuestion 281 of 1605
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?
a.Form 1099-NEC
b.Form W-2
c.Form W-4
d.Form 941
Explanation
Payments of $600 or more to a non-employee (independent contractor) for services require a Form 1099-NEC. A W-2 is issued only to employees, and the $4,500 exceeds the $600 reporting threshold.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)