Ok..yes they were suppose to go out. I have always had my payroll company do these until this year. I am working on the books for my father and can't figure out what box his 1099 contract employee's payments go in. Is it Box 3: Other income or Box:7: Nonemployee Compensation? HELP...Thank you in advance.
tax_black_belt
Favorite Answer
Box 7 is generally the correct box for non-employees who provided services to the business. Box 3 is for anything that doesn't belong in any of the other boxes.
tim
Box 7 is the correct box for contract labor such as those that you are describing. Box 3 is solely for those things that do not fit into any other box. If they are compensated and are not on the payroll, they belong as non-employee compensations.