1099 Filing Services · San Jose, CA

1099-NEC Filing in San Jose, CA

B&H prepares and e-files 1099-NEC forms for San Jose businesses that pay independent contractors. W-9 collection, IRS e-filing, recipient copies, and California compliance — all handled by January 31.

1099-NEC Preparation IRS E-Filing January 31 Deadline California Compliance
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1099-NEC Basics

Who Must File 1099-NEC Forms

If your San Jose business paid or more to any single independent contractor, freelancer, or non-employee service provider during the tax year, you are required to file a Form 1099-NEC with the IRS and provide a copy to that contractor by January 31.

Form 1099-NEC replaced Box 7 of Form 1099-MISC starting with the 2020 tax year. It applies to payments for services — contractors who build things, write things, clean your office, provide IT support, or do any work for you as a non-employee.

The rule applies regardless of how the contractor was paid: check, ACH, wire, cash, or Venmo (Venmo and similar platforms issue their own 1099-K for qualifying transactions, but that doesn't relieve you of the 1099-NEC obligation).

Don't have a W-9 on file? You must backup withhold 24% on payments to contractors who have not provided a valid W-9. B&H can help you collect W-9s before year-end to avoid this issue.

1099-NEC Key Deadlines

Send copy to contractor (recipient) January 31
File with IRS (paper) February 28
File with IRS (e-file) January 31
Electronic filing required at 10+ forms
Payment threshold (NEC) +
Backup withholding rate (no W-9) 24%
What We Handle

B&H 1099 Service for San Jose Businesses

W-9 Collection

We help you collect W-9 forms from your contractors before year-end — the right approach before a problem arises, not after.

1099-NEC Preparation

We review your contractor payment records and prepare accurate 1099-NEC forms for every qualifying contractor.

IRS E-Filing

We file electronically with the IRS through our professional e-filing platform, meeting the January 31 deadline reliably each year.

Recipient Copies

We mail or deliver 1099-NEC copies to each contractor by the January 31 deadline, so you're never scrambling.

California Compliance

California participates in the IRS Combined Federal/State Filing program. B&H ensures your filings satisfy both federal and FTB requirements.

Correction Filing

Made an error on a previously filed 1099? We handle corrected 1099 filings to minimize penalty exposure and keep your records clean.

Why It Matters

1099-NEC Penalties for Late or Missing Filing

The IRS takes information return compliance seriously. Penalties are assessed per form, so a business with even a handful of contractors can accumulate significant penalties quickly.

Scenario Penalty Per Form
Filed within 30 days of January 31 deadline per form
Filed February 1 through August 1 per form
Filed after August 1 or not filed per form
Intentional disregard per form (no cap)

Example: A San Jose business with 15 contractors that files 60 days late faces penalties of × 15 = ,950. Filing on time costs nothing extra; filing late costs real money.

Frequently Asked Questions

1099-NEC Filing FAQ

What is Form 1099-NEC and who needs to file it?

Form 1099-NEC (Nonemployee Compensation) is used to report payments of or more made to independent contractors, freelancers, and other non-employees during the tax year. If your business paid or more to any single contractor in a year, you are required to send them a 1099-NEC by January 31 and file a copy with the IRS.

What is the 1099-NEC filing deadline?

January 31 — the same date applies for both sending recipient copies and filing electronically with the IRS. This is a hard deadline with no automatic extension. If January 31 falls on a weekend or holiday, the deadline moves to the next business day.

What happened to Form 1099-MISC?

Form 1099-MISC is still used, but for different payment types — rent, royalties, prizes, medical payments, and others. As of the 2020 tax year, Box 7 (nonemployee compensation) was removed from 1099-MISC and moved to the new Form 1099-NEC. If you paid contractors before 2020 using 1099-MISC Box 7, that payment type now uses 1099-NEC.

Does California require 1099 filing separately?

California FTB participates in the Combined Federal/State Filing (CF/SF) program, meaning most 1099 forms filed electronically with the IRS are automatically forwarded to the FTB — no separate California filing is required in most cases. However, if any California income tax was withheld from the payment, you must file directly with the FTB. B&H handles California compliance as part of our 1099 service.

What are the penalties for not filing 1099-NEC on time?

Penalties range from per form (filed within 30 days of the deadline) to per form (not filed by August 1 or filed with intentional disregard). For a business with 20 contractors, even a 30-day delay can result in ,200 in penalties. Filing accurately and on time is by far the lowest-cost approach.

Do I need to file a 1099-NEC for payments made through PayPal or credit card?

Generally, no — payments made via credit card, debit card, PayPal, or other third-party payment processors are reported by the payment network on Form 1099-K, and you are not required to also file a 1099-NEC for those payments. However, if payments were made via check, ACH/bank transfer, or cash, the 1099-NEC requirement applies as normal.

Specialized Services

More Tax & Accounting Services in San Jose

Business & Individual Tax Preparation

Full tax return preparation for San Jose businesses and individuals — federal and California, business entity returns, and year-round planning to minimize your tax bill.

San Jose tax preparation →

Payroll Services

B&H runs payroll for San Jose businesses through SurePayroll — direct deposit, tax deposits, quarterly returns, and pay-as-you-go workers' comp integrated into every pay cycle.

San Jose payroll services →

Our Flat-Rate Bookkeeping Process

Clean books mean better 1099 data. B&H's EZ Accounting Process keeps your contractor payments categorized correctly all year long, making January 31 filings straightforward.

See how the EZ Process works →
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Start Your 1099 Filing Today

Don't wait until January to think about 1099s. B&H Accounting & Tax Services helps San Jose businesses collect W-9s, prepare forms, and file on time — every year. Call now for a free 10-minute consultation.

Call 408-256-0339
📍 1721 Mirabella Ct, Milpitas, CA 95035
📞 408-256-0339 (Bill)
📞 408-332-2286 (Hannah)
✉ bnh@bnhtaxservice.com
🕘 Mon–Sat 8:00 am–6:00 pm
📋 Office, on-site, or secure remote portal