By LedgerMapz Tax & Accounting Engineering Team • Reviewed against official CBIC / FTA / IRS rules • Back to Knowledge Hub
To avoid 24% IRS backup withholding requirements, always collect a signed Form W-9 before issuing the first payment to a US contractor. Payments made via ACH, check, or wire totaling $600 or more require Form 1099-NEC by January 31, whereas payments processed via credit card or third-party payment networks are reported by the processor on Form 1099-K.
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