W-9s and 1099-NEC Filing

If your agency pays independent advisors, the IRS requires you to file a Form 1099-NEC for every contractor you paid $600 or more in a calendar year. JourneyFuse tracks W-9s, classifies payments, and produces a filing-ready CSV so January isn't a fire drill.

This article covers the full workflow: collecting W-9s, what counts toward the threshold, paying out commissions, and exporting/filing 1099s.

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The Big Picture

Three things have to come together before you can file a clean 1099-NEC:

1. A W-9 on file from each contractor advisor (with their legal name, address, and tax classification).
2. Accurate payout records — every commission payment marked paid, with the correct payment method.
3. The right agents included — exclude C/S corporations, foreign payees, and payments you made by card or 1099-K processor.

JourneyFuse handles all three. You just need to chase down the W-9s.

You file a 1099-NEC for: US-based independent contractor advisors paid $600+ via cash, check, ACH, Zelle, wire, or personal Venmo.

You do NOT file a 1099-NEC for: W-2 employees (handled by payroll), C-corp or S-corp advisors, foreign payees (use 1042-S), or payments you made by credit card / Venmo Business / PayPal Goods & Services (the processor files a 1099-K instead).

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Step 1: Collect W-9s From Your Advisors

Two ways to get a W-9 into the system

Option A — Agent self-serve (recommended)

Send your advisors to Settings → Profile. They'll see a Tax info card at the bottom with a "Missing W-9" badge. They can:

1. Fill in their legal name (line 1 of the W-9), business name (if any), tax classification, TIN type (SSN/EIN/ITIN), and mailing address.
2. Upload their signed W-9 PDF (PDF, PNG, JPEG, or HEIC up to 10 MB).
3. Click Save tax info.

Their W-9 is stored in a private bucket only owners and admins of the workspace can read.

Option B — Admin uploads on their behalf

If an advisor emails you their W-9, go to Settings → Advisor Management, expand the row, scroll to Tax info (W-9 / 1099), fill in the same fields, and upload the file yourself.

What to ask for

The W-9 PDF itself contains everything you need. Have the advisor download a fresh blank W-9 from irs.gov/pub/irs-pdf/fw9.pdf, fill it out, sign it, and send it back. They should fill in:

• Line 1 — legal name (matches their tax return)
• Line 2 — business name / DBA (if different)
• Line 3a — federal tax classification (Individual, Sole prop, LLC, C-corp, S-corp, Partnership, etc.)
• Part I — TIN (SSN for individuals, EIN for businesses)
• Part II — signature

About the TIN: JourneyFuse only stores the last 4 digits for display. The full TIN belongs in the W-9 PDF itself — never paste it into the form. When you export to Track1099 you'll add the full TIN at the file-prep step from the PDF you have on file.

Where the "No W-9" badges show up

Once W-9 status is tracked, JourneyFuse surfaces it everywhere it matters so you can't miss it:

Where	What you see
Settings → Advisor Management	Amber "No W-9" badge next to any advisor's name in the team table
Commissions → Payouts (Ready to Pay)	"No W-9" badge on each payable agent row, with their YTD paid total
Pay dialog (single agent)	Amber warning callout if this payment will push them past $600 YTD without a W-9
Bulk Pay dialog	Banner listing every agent in the batch who'll cross the threshold without a W-9, plus per-row badges
1099 export dialog	"Missing" badge in the eligibility table; the agent is excluded from the filing-ready CSV

The system never blocks you from paying — you can always record the payment. It just makes the missing W-9 impossible to miss.

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Step 2: Pay Advisors With the Right Method

Different payment methods have very different 1099 implications. JourneyFuse classifies each method automatically.

Methods that ARE 1099-NEC reportable (you file)

• ACH — bank-to-bank transfer
• Check — paper check
• Cash
• Wire
• Zelle — bank-to-bank, banks don't issue 1099-K
• Venmo (personal) — personal-to-personal transfers
• PayPal (friends & family) — personal transfers, no 1099-K
• Other — defaults to reportable (review before filing)

Methods that are NOT 1099-NEC reportable (the processor files 1099-K)

• Venmo Business — Venmo issues a 1099-K
• PayPal (goods & services) — PayPal issues a 1099-K
• Credit / debit card — the card processor issues a 1099-K

If you double-report a payment on both your 1099-NEC and the processor's 1099-K, your contractor's tax return will show it twice. The 1099 export dialog excludes 1099-K methods automatically.

Recording a payout

From Commissions → Payouts → Ready to Pay:

• Single agent — click Pay on their row, pick the method, optionally add a reference (check number, ACH trace), confirm the total. The dialog shows the appropriate 1099-K note if you picked one of those methods.
• Bulk — check the box next to multiple agents, click Pay N agents at the bottom, pick a single method that applies to everyone in the batch.

The payment method is saved with the commission entry and used by the 1099 export to decide what's reportable.

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Step 3: Run the 1099-NEC Eligibility Check Anytime

Open Commissions → Payouts → 1099 export at any point in the year — you don't have to wait until January.

The dialog shows a live Eligibility for [year] table:

Column	What it tells you
Payee	Legal name (from W-9) or fallback to display name
W-9	Green "On file" or amber "Missing"
Class	Federal tax classification from their W-9
Box 1	Total reportable payments (this is what goes on the 1099-NEC)
Status	"Include" (will be in the export) or the reason they're excluded

Reasons an agent is excluded

Reason	What to do
Corporation — exempt from 1099-NEC	Nothing. C/S corp advisors don't get a 1099-NEC.
Foreign payee — use 1042-S	Foreign contractors need W-8BEN and a separate 1042-S filing. Talk to your accountant.
Paid only via card / 1099-K processor	The card / Venmo Business / PayPal G&S processor will file a 1099-K. Nothing for you to do.
Below $600 threshold	IRS doesn't require a 1099 below $600. You can still issue one if you want — set the agent up manually in Track1099.
Missing W-9 — collect before filing	Send them to Settings → Profile or upload their W-9 from Settings → Advisor Management.

What "+$X 1099-K" means

If an agent has both reportable and non-reportable payments in the year, you'll see something like:

Box 1: $3,200.00
       +$450.00 1099-K

That tells you $3,200 goes on your 1099-NEC and $450 is being reported by the processor on a 1099-K. Their total earnings are $3,650; you're filing for $3,200 of it.

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Step 4: Export and File

You have two CSV options, plus a way to mark the filing as done.

Per-entry CSV (legacy)

The original export — one row per commission payment, includes trip/client/supplier context. Useful as an audit trail or to send to your accountant. Doesn't apply 1099 filtering. Use the Advisor dropdown to filter to a single agent.

Track1099 CSV (filing-ready)

Generates a CSV in the column format Track1099 / Tax1099 expect for their Recipient Import template. One row per included payee with name, address, TIN type, and Box 1 amount. TINs are intentionally left blank — paste them from each agent's W-9 PDF before submitting to Track1099.

Why blank TINs? JourneyFuse never stores full TINs (we only keep the last 4 for display). The W-9 PDF in the tax-documents bucket is the source of truth. This keeps you in compliance with data-minimization best practices and means a JourneyFuse breach can never expose contractor SSNs.

Mark as filed

Once you've actually submitted to the IRS (via Track1099, Tax1099, eFile4Biz, paper, or your accountant), click Mark as filed. JourneyFuse:

1. Records a tax_filings row with the date, method, and notes.
2. Snapshots every payee into tax_filing_payees — including the excluded ones, with the reason. The snapshot is frozen so corrections later are unambiguous, even if an advisor's profile changes.
3. Adds the filing to the Filing history list at the bottom of the dialog.

If you re-mark a year as filed (because you found a mistake and want to file a corrected 1099), the previous "filed" row is automatically marked superseded so the audit trail stays clean.

Don't forget state filings

Most states get federal 1099-NEC data through the IRS Combined Federal/State Filing (CF/SF) program — but not all of them.

• Direct state filing required: CA, MA, OR, PA
• Additional state rules: KY, WI, NJ, NY, RI
• No state income tax (nothing to file): AK, FL, NV, NH, SD, TN, TX, WA, WY

If your advisors live in any of the first two groups, file directly with that state's revenue department too. Track1099 and Tax1099 can usually file state forms for you as an add-on.

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Special Cases

Advisor switches from individual to LLC mid-year

Have them upload a new W-9 with the updated classification, business name, and EIN. JourneyFuse stores the most recent W-9 (replacing the prior file) and updates their classification. The 1099 you file in January reflects whatever's on file at filing time, so collect the updated W-9 before you file.

Backup withholding

If the IRS sent you a CP2100 / CP2100A notice for an advisor (mismatched TIN, refusal to provide one, etc.), toggle Backup withholding on their tax info. The Track1099 export will populate Box 4 (Federal Income Tax Withheld) at 24% of their Box 1 amount automatically.

You're responsible for actually withholding the 24% from their payouts and remitting it to the IRS — JourneyFuse just makes sure the 1099 reflects it.

Foreign advisors

Toggle Foreign payee on their tax info. They'll be excluded from 1099-NEC and you'll handle them via Form W-8BEN and Form 1042-S separately (typically through your accountant — JourneyFuse doesn't generate 1042-S exports yet).

Advisor disputes the amount

The Box 1 total in the eligibility table comes from the sum of agent_amount on every commission entry marked paid in that calendar year, with a 1099-NEC-reportable payment method, where the trip's assigned_to is that advisor.

To investigate a discrepancy:

1. Use the Per-entry CSV export (legacy) filtered to just that advisor — every paid commission in the year, with date, trip, supplier, payment method.
2. Cross-reference with what the advisor sent you.
3. If a commission was paid via card / Venmo Business, it's on 1099-K, not your 1099-NEC — that's by design.
4. If the issue is that a trip was assigned to the wrong advisor, fix the trip's Assigned to field; the eligibility recomputes when you reopen the dialog.

Re-issuing a corrected 1099

After filing, if you discover a mistake (wrong amount, wrong address, wrong agent included):

1. Fix the underlying issue (correct the W-9, update the classification, etc.).
2. Reopen the 1099 export dialog.
3. Click Mark as filed again — the new filing supersedes the old one. Use the Notes field to record what changed (e.g., "corrected: Sarah's address updated").
4. File the corrected 1099 with the IRS through your filing service.

What gets stored vs. what doesn't

Stored in JourneyFuse	NOT stored
W-9 PDF (private storage bucket, admin-only)	Full TIN/SSN/EIN
W-9 status (not_requested / requested / on_file / expired)	Bank account numbers
Date W-9 was received	Income outside what you've recorded as paid commissions
Tax classification, legal name, business name, address
TIN last 4 + TIN type (SSN/EIN/ITIN)
Backup withholding flag, foreign payee flag

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Tips From Top-Performing Agencies

1. Collect W-9s at advisor signup, not at year-end. Add it to your onboarding checklist. Send the new advisor their /settings/profile link as part of the welcome email — they upload once and you never have to chase.

2. Run the 1099 export quarterly. Open the dialog every few months and scan for "Missing W-9" badges. Catching it in April when an advisor is at $1,200 YTD is a 30-second email; catching it in January when they're at $14,000 is a phone call.

3. Standardize on ACH or Zelle for advisor payouts. Both are 1099-NEC reportable, free, and fast. Avoid Venmo Business / PayPal G&S unless you specifically want those payments off your 1099 (and onto the processor's 1099-K).

4. Tell new LLC advisors which classification to pick. Most travel-advisor LLCs are "single-member LLC" or "LLC taxed as partnership" — both 1099-NEC reportable. If they pick "LLC taxed as S-corp" by mistake, you won't file a 1099 for them.

5. Mark as filed in JourneyFuse the same day you submit to Track1099. It's the only way to know later (in an audit, or when an advisor asks "did you file mine?") what was included and at what amounts.

6. Keep the W-9 PDF. The IRS requires you to keep W-9s on file for 4 years after filing the related 1099. JourneyFuse stores them indefinitely — don't delete them after January.

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FAQ

Do I need to file a 1099-NEC for an advisor I paid less than $600? No. The IRS threshold for 1099-NEC is $600 in a calendar year. JourneyFuse excludes them from the filing-ready CSV automatically. If you want to issue one anyway (some agencies do as a courtesy), add them manually in your filing service.

An advisor refuses to give me a W-9. What now? Two options: (1) stop paying them until they do, or (2) start backup withholding 24% from every payment, remit it to the IRS quarterly, and report it in Box 4 of their 1099. Realistically, most agencies just refuse to issue further payments — talk to your accountant about your specific situation.

My state requires me to file 1099s with them too. How? JourneyFuse generates the federal 1099-NEC. State filings are separate. Track1099 and Tax1099 can both file state 1099s as an add-on for ~$1-2 per recipient. Or your accountant can file them.

What if an advisor moved mid-year? The 1099 should show their address as of December 31. Have them update their mailing address in Settings → Profile → Tax info before you file. The Track1099 CSV uses whatever's on file at export time.

An advisor's legal name doesn't match their bank account name. Which goes on the 1099? The 1099 must show their legal name as it appears on their tax return (W-9 line 1). If their bank account is in a business name, that's irrelevant — the 1099 uses what they put on the W-9.

Can I issue a 1099-MISC instead of a 1099-NEC? Not for nonemployee compensation (which is what advisor commissions are). The IRS moved that out of 1099-MISC and into the new 1099-NEC starting in tax year 2020. JourneyFuse only generates 1099-NEC.

What about a 1099 for my agency's owner (me)? You don't issue a 1099 to yourself. If you're an LLC owner taking distributions, that's a K-1 or owner draw, not a 1099-NEC. Talk to your accountant.

Will JourneyFuse e-file my 1099s for me? Not directly. Take the Track1099 CSV export and submit it through Track1099 (~$2.99 per recipient including IRS e-file, recipient mailing, and most state filings). Tax1099 works the same way. Then come back and click Mark as filed to record what you submitted.

Where do W-9 PDFs live? In a private Supabase Storage bucket called tax-documents. Only owners and admins of your workspace can read them — agents can read and replace their own, but not see other agents'. Path is <workspace-id>/<user-id>/<filename> so multi-tenant isolation is enforced at the storage layer too.

An advisor uploaded the wrong file. How do I delete it? Either the advisor (from their own profile) or any admin (from Settings → Advisor Management) can click the trash icon next to the W-9 document. Their W-9 status drops back to "Requested" and they can upload a replacement.

Does the system handle 1099-K, 1099-INT, or other 1099 forms? Just 1099-NEC right now. 1099-K is filed by the payment processor automatically. Other 1099 types (interest, dividends, etc.) are out of scope for an agency management tool — talk to your accountant.