Verify and distribute Form 1099-NEC with Square Payroll
About Form 1099-NEC
Square Payroll automatically generates and electronically files Form 1099-NEC for each of your contractors at the end of the year. These forms will be available for you to print out and distribute to your contractors by going to Tax Forms in the Payroll section of your Square Dashboard. Although Square Payroll files Form 1099-NEC on your behalf, you and your contractors are responsible for filing their taxes and confirming the information in Form 1099-NEC is accurate.
Before you begin
All contractor payments for a given tax year must be submitted and recorded in Square Payroll by the third business day of the new year. This is applicable only to employees with at least one pay date in that tax year
Contractors with online accounts can access a copy of their Form 1099-NEC for a previous year in their Tax Forms in their Square Payroll employee dashboard or Square Team App. You can also download and distribute the forms yourself.
Deactivated team members can only access payroll documents, such as tax forms and paystubs, through their Square Payroll employee dashboard.
Form 1099-NEC is no longer part of the Combined Federal/State Filing (CF/SF) Program and you will need to contact your state revenue department directly about filing the Form 1099-NEC on the state level. Review your Square Payroll state tax resources.
Alaska, Florida, Illinois, Iowa, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington, and Wyoming do not have state filing requirements for Form 1099-NEC.
Maine, Ohio, South Carolina, Utah, Virginia, and West Virginia only have Form 1099-NEC filing requirements if backup state withholding is reported.
Square Payroll does not file Form 1096. Since Square e-files forms 1099-NEC, Form 1096 is not required.
If you would like to opt out of Square Payroll filing Form 1099-NEC on your behalf, you can deselect Automatically file Form 1099-NEC for this contractor on a team member’s profile by the third business day of the new year. Learn how to add and manage team members.
Step 1: Download your Square Payroll form 1099-NECs
You can download your Form 1099-NECs from your Square Dashboard.
Sign in to your Square Dashboard and select Staff & Payroll > Payroll > Tax forms.
Choose the form you wish to download and select Download.
Extract the Form 1099-NECs from the downloaded .zip file.
Step 2: Verify your Square Payroll form 1099-NEC data
You and your contractors are responsible for ensuring the information on Form 1099-NECs is correct. We start generating draft Form 1099-NECs on December 19, 2023. Review them for accuracy. You will have until January 4, 2024 to review and update your contractors’ information, including their full name, Social Security Number (SSN), and home address.
Avoid these common errors:
Incorrect or misspelled names
Incorrect SSN
Using nicknames or shortened names
Titles before or after the name
Name changes not reported to the Social Security Administration (SSA).
Learn more about these critical fields on the SSA website.
Learn how to update your Square Payroll account information.
Step 3: Distribute your Square Payroll form 1099-NECs
Your contractors must consent to receive digital copies of their Form 1099-NEC, otherwise, you must provide them with a physical copy. You can have Square Payroll send this out by adjusting your payroll settings in your Square Dashboard.
Sign in to your Square Dashboard and select Staff & Payroll > Payroll > Settings.
Toggle on Send W-2s and 1099s via paper mail.
Square will mail a tax form to the addresses on file for all contractors that were paid in the prior year. Paper copies of forms W-2 and 1099-NEC incur a fee of $3 per employee or contractor.