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For example, common reportable payments include: Fees paid to independent contractors Commissions paid to nonemployee salespersons Payments made to attorneys Payments for services performed by nonemployees When a Payment Qualifies as Nonemployee Compensation To qualify, a payment must meet all of the following conditions: First, the business paid a nonemployee Next, the payment covered services performed for a trade or business Additionally, the payment went to an individual, partnership, estate, or certain corporations Finally, total payments reached $600 or more during the year In contrast, employers must withhold income and FICA taxes when they pay employees

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