Every January, a lot of business owners spend a stressful week chasing W-9s and adding up what they paid each subcontractor. It's much easier in November.
What changed this year: for payments made in 2026, the IRS threshold for reporting nonemployee compensation on Form 1099-NEC went up to $2,000 (it was $600). The IRS says the threshold may be adjusted for inflation starting in 2027.
The deadline: Form 1099-NEC is due January 31. For 2026 payments, January 31, 2027 falls on a Sunday, so the due date moves to the next business day, Monday, Feb. 1, 2027.
What I'd do this month:
List everyone you paid for services this year who isn't an employee: subs, freelancers, cleaners, bookkeepers, anyone.
Get any missing W-9s now, while people still answer the phone and before the holidays.
Total what you've paid each one so far, and flag anyone near or over $2,000.
Ask your tax preparer which payees need a form. Some payments, like those to attorneys, and some types of payees follow different rules.
Get this ready in November and January becomes filing, not hunting.
If your vendor list is a mess, send me a message through the Contact page and we can get it sorted before year-end.
— Rachel, Two Miles LLC