1099 Rules for Subcontractors: a Builder's Guide

Every January, builders lose days to the same excavation: which subs did we pay more than $600, where are their W-9s, and what's a current address for the framer who moved twice. None of it is hard — it's just work that compounds when you leave it for year-end.

The basics

• Who: unincorporated subs and vendors (sole proprietors, partnerships, most LLCs) paid $600+ in the year for services. Corporations are generally exempt; attorneys are reportable regardless.
• What: Form 1099-NEC for nonemployee compensation (services + the materials a sub bills as part of their service).
• When: furnish to the sub and file with the IRS by January 31.
• How you know their details: Form W-9, which the sub fills out with their legal name, entity type, and TIN.

Cash basis matters

1099 totals are what you actually paid during the calendar year — not what you were billed. A December bill paid in January belongs on next year's form. If your records only track bills, your 1099 numbers are wrong.

The fix is onboarding, not January

Collect the W-9 the day the sub starts, not the year they finish. NeatBuild flags 1099 vendors, sends each one a self-service link to upload their W-9 and insurance certificate, tracks expirations, and computes cash-basis payment totals per vendor — so January is an export, not an archaeology dig.

This is general information, not tax advice — confirm specifics with your CPA.