Do I have to issue 1099s to my contractors if I pay them through Venmo?

You may need to issue 1099-NEC forms to your contractors even if you pay them through Venmo—but it depends on a few important factors:

✅ You must issue a 1099-NEC if:

1. You paid an individual or unincorporated business (like a sole proprietor or partnership).

2. You paid $600 or more during the year.

3. The payments were for services in the course of your trade or business, not personal payments.

   
   

📱 What about Venmo?

• The IRS does not exempt payments made through Venmo or other third-party platforms unless the payment is clearly made through a business version of the platform and the platform issues its own 1099-K.

• Venmo’s personal accounts do not issue 1099-Ks.

• Therefore, if you’re using a personal Venmo account to pay contractors, you should still treat those as reportable and issue a 1099-NEC.

🚫 When you might not need to issue a 1099:

• If the contractor is a corporation (excluding lawyers and medical providers—those still get 1099s).

• If the payments are made through a platform that does issue a 1099-K and you have documentation that they do so.

• If the total paid to the contractor is under $600 for the year.

🔍 Best Practice:

• Use a business Venmo account if you want to keep things separate and more reportable.

• Collect a W-9 from every contractor before paying them. This will help you determine whether they’re reportable (and get their correct name, tax ID, etc.).

• Track total payments per contractor, regardless of payment method.

• Issue the 1099-NEC if required by January 31st following the end of the tax year

If you have questions about your specific situation, or you need help filing your 1099s, feel free to reach out to admin atcaslerfinancial.com