A 1099-MISC form is similar to a W-2, and is used to track the income of independent contractors or businesses who are not set up as corporations. Broadly speaking, it is given to non-employees paid by your business.
The general rule is that you must issue a Form 1099-MISC to any vendors or sub-contractors you have paid at least $600 in rents, services, prizes and awards, or other income payments in the course of your business in a given tax year. Vendors and sub-contractors are essentially any person or company that is not your employee and that you have paid for services.
There are two additional forms that you must take into account when reporting non employee compensation to the IRS. They are the 1099-K and the 1099-NEC. Here we will explain what each form is used for and where you can find the data in your AvidXchange portal to complete these for your suppliers.