1. Compensation and benefits tax: employment tax

2. EMPLOYMENT TAX FORM 1099-MISC What Payments to Report
Report payments for the following:
At least $10 in royalties
At least $600 in rents, services, prizes and awards, and medical and health care payments*
*Ex: employer payments for free screenings, blood pressure exams, flu shots, etc.
Fishing boat proceeds
Gross proceeds of $600 or more paid to an attorney
Payments of Directors' fees (e.g., Board of Directors' fees)

3. EMPLOYMENT TAX FORM 1099-MISC What Payments To Report - Trade or Business Reporting Only
"Report on Form 1099-MISC only when payments are made in the course of your trade or business."
You are engaged in a trade or business if you operate for gain or profit.
Also includes non-profits and other organizations subject to reporting requirements like trusts, qualified pensions, or profit-sharing plans

4. EMPLOYMENT TAX FORM 1099-MISC What Payments NOT to Report
1. Payments to a corporation 2. Payments for merchandise, freight, storage, and similar items 3. Wages paid to employees 4. Business travel allowances 5. Cost of current life insurance protection

5. EMPLOYMENT TAX FORM 1099-MISC Box 3 – Examples of Other Income
Payments of deceased employee's wages
Payment or a series of payments, made to individuals for participating in a medical research study
Termination payment to former self-employed insurance salespeople
All punitive damages, any damages for non-physical injuries or sickness, and any other taxable damages

6. EMPLOYMENT TAX FORM 1099-MISC Box 7 - Nonemployee Compensation
If the following four conditions are met, must generally report a payment as "Nonemployee Compensation" in Box 7:
Made the payment to someone who is not an employee
Made the payment for services in the course of the payor's trade or business
Made the payment to an individual, estate, or partnership
Generally, amounts reportable in Box 7 are subject to self-employment tax

7. EMPLOYMENT TAX FORM 1099-MISC Box 7 - Nonemployee Compensation
Professional service fees such as attorneys' fees, accountants' fees, architects' fees, contractors' fees, etc.
Fees paid by one professional to another, such as fee-splitting or referral fees
Commissions paid to nonemployee salespersons
Travel reimbursement paid to an independent contractor who did not account for the expense, if the amount is above $600