
When it comes to filing 1099s, not all industries are created equal. Both real estate professionals and brewery owners regularly hire independent contractors, but each faces its own unique filing considerations. From marketing freelancers and band performers to maintenance crews and photographers, understanding when and how to file Form 1099-NEC is essential for avoiding IRS penalties and staying compliant.
Key takeaway:
If you paid any nonemployee $600 or more during the year for services related to your business, you likely need to file a 1099-NEC, and real estate and brewery industries are no exception.
The IRS requires businesses to file Form 1099-NEC (Nonemployee Compensation) when they pay an independent contractor $600 or more in a calendar year. This includes payments for services provided by individuals, partnerships, or LLCs that are not taxed as S- or C-Corps.
Common examples:
Failing to file on time or not filing at all can result in penalties ranging from $60 to $310 per form, depending on how late the filing is.
Real estate agents and brokerages frequently rely on contractors, especially for:
Tip: A professional real estate photographer paid $1,200 over the course of the year for multiple property shoots should receive a 1099-NEC.
Breweries often employ a mix of employees and independent contractors. Common contractors may include:
Tip: If you paid a marketing agency $1,000 for a holiday campaign and they’re not a corporation, they should receive a 1099-NEC.
The deadline to file Form 1099-NEC is January 31 each year. This includes both:
For small business owners who don’t use accounting software, online tools like WageFiling offer a fast, IRS-approved way to complete the process with no subscription fees or complicated forms.
Pro tip: Always keep a copy of each W-9 form on file and back up your payment records. If you’re audited or need to make a correction, this paperwork is essential.
For more on how to stay compliant and avoid penalties, read this guide on timely 1099 filing.
You must still file a 1099-NEC. All forms of compensation count, including cash, checks, and online transfers.
Yes, if they were paid $600 or more during the year, even for a one-time gig.
Yes, WageFiling allows bulk entry and same-day efile for multiple recipients.
1099 real estate agent