
Know who you paid? We’ll handle the rest.
Whether someone is an employee or a contractor determines which form you need to file. We’ll remove the guesswork by clearly explaining the difference and guiding you to the right form for your needs.
Use a W-2 for employees
Employees work under your direction. You control how, when, and where the work is done, and taxes are withheld from their pay.
Common examples:
Full-time or part-time staff
Employees on payroll
Workers receiving regular wages


Use a 1099-NEC for contractors
Contractors work independently. You pay them for services, and they handle their own taxes.
Common examples:
Freelancers
Consultants
Independent contractors
If you paid a contractor $600 or more, you are generally required to file a 1099-NEC.
Use a 1099-MISC for miscellaneous payments
This form reports specific types of income that aren’t reported on a 1099-NEC.
Common examples:
Rent payments
Prizes and awards
Royalties
Payments to attorneys
Other qualifying income over $600
If you made payments in these categories, you’ll need to file a 1099-MISC.

How It Works

Everything you need, where you need it
Whether you’re filing for employees, contractors, or both, Adams keeps everything organized and easy to manage.
File with confidence:
Accurate income reporting
Clear guidance on which form to file
Avoid IRS penalties
Built-in checks to catch common errors
IRS-compliant and always current
Flexible delivery options
