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NC-1099M PRINT CLEAR
Web-Fill
1-20 Compensation Paid to a Payee
General Instructions for Specific Instructions for Payer 03 – Compensation paid to an individual or
Non-Wage Compensation entity that failed to provide the payer with
Paid to Certain Payees General. Complete this form to report the non- its taxpayer identification number.
wage compensation paid to a payee for services 04 – Compensation paid to an individual or
A payer is required to withhold North Carolina performed in North Carolina and the North entity that failed to provide the payer with
income tax from non-wage compensation paid Carolina tax withheld from that income. If you a valid taxpayer identification number.
to a payee. A payer is an individual or entity that are required to complete a federal Form 1099- Form NC-3, Annual Withholding Reconciliation.
pays non-wage compensation in the course of MISC or Form 1099-NEC to report the non-wage Electronically submit Form NC-3 and the required
their trade or business. compensation paid to a payee, you do not have to Form W-2 and 1099 statements, including Form
complete this form. Do not use this form to report NC-1099M, to the North Carolina Department
A payee is any of the following: the payment of wages. of Revenue by January 31 of the succeeding
a. A nonresident contractor: a nonresident Furnish two copies of Form NC-1099M to the year. Note: If you terminate your business or
individual or a nonresident entity that performs payee by January 31 following the calendar year permanently cease paying wages and non-wage
services in this State which are in connection in which the non-wage compensation was paid. compensation subject to North Carolina income
with a performance, an entertainment or Include a copy of these instructions with the tax withholding, Form NC-3 and the required
athletic event, a speech, or the creation of a payee’s copies of Form NC-1099M. Note: If the W-2 and 1099 statements must be filed within 30
film, radio, or television program. services are completed before the end of the year, days of the last payment of wages or non-wage
b. An ITIN contractor: an individual who performs furnish two copies of Form NC-1099M to the payee compensation.
services in this State for compensation other within 30 days of the last payment of non-wage See NC-30, North Carolina Income Tax
than wages, and whose taxpayer identification compensation. Withholding Tables and Instructions for
number is an Individual Taxpayer Identification Employers, for additional information.
Number (ITIN), including applied for and For your records, retain a copy of each Form NC-
expired numbers. An ITIN is issued by the IRS 1099M that you furnished to a payee.
to a person who is required to have a taxpayer Payee’s federal taxpayer identification number. Specific Instructions for Payee
identification number but does not have and is Enter the federal taxpayer identification number
not eligible to obtain a social security number. provided to you by the payee. If the payee Withholding of income tax from a payee’s
c. An individual or entity that fails to provide the does not provide you with their federal taxpayer non-wage compensation does not relieve the
payer with a taxpayer identification number. identification number, leave this field blank and payee from their responsibility to file a North
enter “03” for the Compensation Code. If you Carolina income tax return. Individuals and C
d. A individual or entity that provides an invalid have been notified by the Department that the corporations may claim the tax withheld reported
taxpayer identification number to the payer and payee’s federal taxpayer identification number is in Box 2 against the income tax liability for the
the payer is notified by the Department that the not valid, enter the federal taxpayer identification year. Partnerships may claim only the portion of
taxpayer identification number is invalid. number provided to you by the payee and “04” for tax withheld that is attributable to nonresident
The requirement to withhold applies to payers who the Compensation Code. partners on whose behalf the managing partner is
required to pay the tax. S corporations may claim
pay more than $1,500 of non-wage compensation Compensation Code. Enter the number that only the portion of the tax withheld attributable
to an above mentioned payee. These payers correspondences with the compensation reported to its nonresident shareholders on whose behalf
must withhold North Carolina income tax at the on Form NC-1099M. a composite income tax return is filed. Attach a
rate of four percent (4%) from the compensation.
See NC-30, Income Tax Withholding Tables 01 – Compensation paid to a nonresident copy of Form NC-1099M without the instructions
and Instructions for Employers, for additional contractor to the income tax return to support North Carolina
information. 02 – Compensation paid to an ITIN contractor tax withheld.
Cut and mail original form to:
N.C. Department of Revenue, P.O. Box 25000, Raleigh, NC 27640-0001
Form NC-1099M to be completed by Payer only
CORRECTED (if checked)
PAYER’S name, street address, city, state and ZIP code TAX YEAR
Form NC-1099M
Compensation Code Compensation Paid
to a Payee
1. Compensation paid for services in North Carolina Give two copies
PAYER’S federal taxpayer identification no. PAYEE’S federal taxpayer identification no. to payee
Keep one copy
$ for your records
2. North Carolina income tax withheld
PAYEE’S name, address, (incl. apt. no.), city, state and ZIP code
$
3. PAYER’S North Carolina withholding account no.
Form NC-1099M Rev. 1-20 (Web-Fill) North Carolina Department of Revenue, P.O. Box 25000, Raleigh, N.C. 27640-0001
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