Fintra Payroll
Contractor pay in, 1099-NEC out
What contractor reporting covers
Contractors don’t run through the tax engine, there’s no withholding, but they still need clean year-end reporting. Fintra records each contractor payment against the payer’s ledger and rolls the year up into a 1099-NEC summary, flagging exactly who crosses the IRS filing threshold.
| Report | What it shows |
|---|---|
| Contractor payments | Every nonemployee payment for a period |
| 1099-NEC summary | Per-recipient totals with the $600 threshold applied |
Filing threshold
file 1099-NEC when YTD nonemployee comp ≥ $600
The IRS requires a payer to file a 1099-NEC when total nonemployee compensation to a recipient for the year is $600 or more (26 CFR 1.6041-1). Fintra applies this per recipient automatically.
W-2 workers vs 1099 contractors
| W-2 employee | 1099-NEC contractor | |
|---|---|---|
| Tax withholding | Full FIT/FICA/state engine | None |
| Year-end form | W-2 (boxes 1–17) | 1099-NEC |
| Threshold | Any wages | $600 nonemployee comp |
| In Fintra | YTD accumulators | Contractor payment ledger |
Honest scope
Inside Fintra
Contractor payments post to the same GL export path as payroll, so nonemployee spend lands in your accounting alongside wage expense.
Questions people ask
When does a contractor need a 1099-NEC?
When you pay them $600 or more in nonemployee compensation for the year. Fintra applies that threshold per recipient in the 1099-NEC summary automatically.
Do contractors go through tax withholding?
No. Contractors are paid gross with no FIT/FICA/state withholding; they’re tracked on a separate payment ledger and reported on 1099-NEC rather than W-2.
Does Fintra e-file 1099s?
Fintra produces the contractor-payments and 1099-NEC-summary reports with the threshold applied. Official PDF rendering and e-filing are outside Fintra today.
Do contractor payments hit my books?
Yes: contractor payments flow through the GL export so nonemployee spend is posted to accounting alongside employee wage expense.
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Contractor season, sorted
Track nonemployee pay all year and generate 1099-NEC summaries with the threshold applied.