1099-NEC
Mark your contractors and see what you paid each in cash during the year, excluding card payments, ready for 1099-NEC filing.
The 1099-NEC report totals what you paid each contractor in the calendar year (Box 1, nonemployee compensation) and shows who reached the filing threshold.
Lejr prepares the figures. It doesn't file 1099s or send them to contractors.
Preparing the year
- Mark your contractors
On a vendor's Details tab, set Type to 1099-NEC contractor. Only those vendors appear. The change applies to every year, closed ones included.
- Collect the W-9
Enter the contractor's Tax ID and mailing address. A contractor who needs a form but lacks either is flagged in the W-9 / TIN column.
- Pick the year
Open 1099-NEC under Financials → Tax. From January through April it opens on last year; after that, on the current year.
- Check the payments
Click a contractor to see each payment and which column it counts in: Box 1, card, or not reportable.
- Export
Export gives a PDF, Excel or CSV with full tax IDs for whoever files. The screen shows only the last four digits.
What counts as paid
Box 1 is cash paid in the calendar year. A bill counts when it's paid; a prepayment counts when you make it. A payment you made personally, or one paid from a loan, still counts.
Payments by credit card or through a network such as PayPal or Venmo go in Card (excluded), not Box 1. The card company or network reports them on a 1099-K.
Payments that aren't compensation
Goods and reimbursements aren't nonemployee compensation. Mark an account Not 1099-reportable in the chart of accounts, and payments to contractors through it move to Not reportable.
For a single payment, open the contractor and use Exclude…, Include… or Paid by card or network… with a reason. This changes the report only, not your books. Payments in a locked period can't be changed.
Box 1 + card + not reportable always equals Total paid.
The threshold
1099 required reads File 1099 when Box 1 reaches the year's threshold: $600 through 2025, $2,000 from 2026. Contractors entered twice under the same tax ID are combined.
Good to know
- If you paid a contractor by debit card, mark that payment Paid by card or network…. The bank account alone can't show it went through a card network.
- Mark a PayPal or Venmo cash account Payments from this account go through a card or payment network to send all its payments to the card column.
- Rent and payments to attorneys may belong on Form 1099-MISC, which Lejr doesn't prepare.
- Viewers see tax IDs masked to the last four digits, on screen and in exports.
Common questions
- Why is Box 1 lower than what I spent with a contractor?
- Some payments were by card or a payment network, or went through an account marked Not 1099-reportable. Click the contractor to see where each payment landed.