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