If the following four conditions are met, you must generally report a payment as nonemployee compensation.
- You made the payment to someone who is not your employee.
- You made the payment for services in the course of your trade or business (including government agencies and nonprofit organizations).
- You made the payment to an individual, partnership, estate, or, in some cases, a corporation.
- You made payments to the payee of at least $600 during the year."
See another MinistryCPA post discussing Employee vs. Independent Contractor: