01/15/2022
What's the difference between a Form W-2 and a Form 1099-MISC or Form 1099-NEC?
IRS Answer:
Although these forms are called information returns, they serve different functions.
Employers use Form W-2, Wage and Tax Statement to:
Report wages, tips, and other compensation paid to an employee.
Report the employee's income and social security taxes withheld and other information.
Employers furnish the Form W-2 to the employee and the Social Security Administration. The Social Security Administration shares the information with the Internal Revenue Service.
Payers use Form 1099-MISC, Miscellaneous Information or Form 1099-NEC, Nonemployee Compensation to:
Report payments made of at least $600 in the course of a trade or business to a person who's not an employee for services (Form 1099-NEC).
Report payments of $10 or more made in the course of a trade or business in gross royalties or payments of $600 or more made in the course of a trade or business in rents or for other specified purpose.
Find out more at IRS.gov