Do I need to send 1099s to my subcontractors?

Usually, yes. If your business pays a subcontractor that isn’t a corporation for services, and the year’s total reaches the annual reporting threshold, you file Form 1099-NEC with the IRS and give the subcontractor a copy by January 31. Congress raised that threshold for payments made in 2026 and later, and it adjusts for inflation after 2026, so fewer small payments need reporting. Payments to corporations are generally exempt, though legal fees and medical services are not. Get a Form W-9 before the first payment: if a subcontractor won’t give you a taxpayer ID number, you have to withhold tax from what you pay them. We can review your vendor list before year-end so January filing is routine.