New Threshold:

The IRS is increasing the 1099-NEC reporting threshold from $600 to $2,000 starting in 2026.

Key Requirements:

1. Accurate TINs Are Mandatory
   Contractors must provide a Taxpayer Identification Number (TIN) that matches the legal name on record with the IRS.
   • The IRS is now actively sending mismatch notices.
   • Businesses will be required to verify TINs with the IRS before filing 1099 forms.
2. W-9 Forms
   The IRS recommends keeping W-9s on file for all contractors.
3. Backup Withholding
   If the TIN provided does not match the IRS database or the contractor’s W-9, you will be required to withhold 24% in federal tax from all payments.

We offer E-Verify TIN services to help ensure IRS compliance.

If you would like Managepoint to conduct TIN verification on your behalf, please contact: HR@managepoint.biz

Fee: $15.00 per W-9

Acceptable Taxpayer Identification Numbers:

• Social Security Number (SSN): Must match the contractor’s legal name.
• Federal Employer Identification Number (FEIN): Must match the legal business name associated with the FEIN.

Penalties for noncompliance range from $270 to $350 per form.

Along with a W-9 on file, you should also maintain a Workers’ Compensation Certificate of Insurance (COI) for each contractor.

If a contractor cannot provide a COI or does not carry Workers’ Compensation coverage, they may submit an Exemption of Coverage Certificate (Form WCE-1) through the Indiana Department of Revenue (IN DOR).

Failure to obtain proper documentation may result in additional penalties and unemployment tax liability.

For questions or assistance, please contact Managepoint HR at HR@managepoint.biz.