The way we work has changed. With more small businesses hiring remote and out-of-state contractors, understanding 1099 filing responsibilities is more important than ever. Whether your contractor lives across town or across the country, the IRS still expects accurate reporting.
Key takeaway: You must file a 1099-NEC for any contractor paid $600 or more during the year, even if they live or work in another state.
Do I Need to File a 1099 for Remote or Out-of-State Contractors?
Yes. The IRS requires businesses to issue a Form 1099-NEC to any non-employee who received $600 or more in payments for services, regardless of where that person lives or works.
If you’re a Texas-based business hiring a designer in Florida, or a marketing consultant in California, the rule still applies. The key difference lies not in whether you file but how you handle potential state reporting requirements.
Understanding Federal vs. State Filing Responsibilities
At the federal level, every qualifying contractor must be reported to the IRS using Form 1099-NEC. That part is simple with WageFiling, which automatically transmits your forms to the IRS once you efile.
However, some states have their own filing requirements, known as Combined Federal/State Filing (CF/SF). Most states participate in this program, meaning once you efile with the IRS, the information is automatically shared with the state. A few states, however, require separate submissions.
Examples:
- Texas: No state income tax and no 1099 filing requirement.
- California: Participates in the CF/SF program, but businesses registered in CA may still need to maintain their own 1099 records.
- New York and Pennsylvania: Often require separate or supplemental state filings.
Before you file, check the IRS Combined Federal/State Filing Program page to confirm whether the contractor’s state requires additional reporting.
Information You’ll Need to File
To file a 1099-NEC correctly for a remote or out-of-state contractor, gather the following details before starting:
- Completed W-9 form from each contractor (name, address, and TIN)
- Total payments made during the year (must equal $600 or more)
- Business information for the payer (your company name, EIN, and address)
- Correct state or locality information if required for reporting
Always confirm the contractor’s address and tax ID early in the year to avoid delays at filing time.
Common Mistakes When Filing for Remote Workers
Even experienced business owners can make errors when filing 1099s for remote or multi-state workers. Watch out for these common issues:
- Using the wrong address for the contractor (especially if they’ve moved mid-year)
- Reporting to the wrong state agency or missing a supplemental state form
- Omitting backup withholding if a W-9 wasn’t collected
- Failing to meet the January 31 deadline for recipient copies
Efiling through WageFiling helps eliminate these problems by guiding you through each step and ensuring every form is properly formatted for IRS acceptance.
How to File 1099 Forms for Remote Contractors
Efiling takes the stress out of managing paperwork for remote or out-of-state workers. Here’s how to do it:
- Go to File Here
Start at WageFiling’s secure efile portal to begin your submission. - Log in or Create an Account
Returning users can log in with saved credentials. New users can register quickly. - Enter Payer and Contractor Details
Add your business information and your contractor’s W-9 data, including address and TIN. - Select Form 1099-NEC
Choose 1099-NEC from the available IRS form list. - Enter Payment Totals and Review
Input the total paid to each contractor and double-check for accuracy. - Submit Electronically to the IRS
WageFiling securely sends your form to the IRS and automatically stores a copy for your records.
For more details on handling multi-state compliance, visit the IRS Combined Federal/State Filing Program page.
Why WageFiling Is Ideal for Remote Teams
When you work with remote contractors, simplicity and accuracy matter. WageFiling streamlines the entire process by:
- Efiling directly with the IRS and handling recipient copies
- Auto-formatting data to prevent common errors
- Storing all records securely online for easy access next year
- Providing instant confirmation of successful submission
No matter where your team members live, you can complete all your 1099 filings in minutes — no paper, no postage, no waiting.
To learn more about issuing 1099 forms for contractors, check out How Do I Issue a 1099 Form to Contractors, Freelancers, or Vendors?.
Frequently Asked Questions
Do I need to file a 1099 for a contractor who lives in another state?
Yes. You must file Form 1099-NEC for any non-employee who earned $600 or more, regardless of location.
What if my contractor is in a state with no income tax?
You still need to file federally with the IRS, but no separate state filing is required.
How can I confirm if a state requires 1099 reporting?
Check the IRS Combined Federal/State Filing Program list to confirm if the contractor’s state requires additional submission.
