Business FinancesQuestion 1162 of 1605
A contractor pays an unincorporated subcontractor $12,000 for services during the year. He generally must issue the subcontractor:
a.Form 1120
b.Form 1099-NEC
c.Form W-2
d.No form is ever required
Explanation
Payments of $600 or more for services to an unincorporated independent contractor during the year generally must be reported on Form 1099-NEC. A W-2 is only for employees; Form 1120 is a corporate income tax return.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)