Filer mechanics

Gusto 1099s: what Gusto files, when contractors get them, and what sits outside

Gusto's current help center says it files Form 1099-NEC with the IRS and required states for eligible U.S. contractors with payments reported in Gusto, reports contractor earnings in box 1, and makes copies available in contractor accounts. Gusto also says it files forms when payments are below the applicable federal reporting threshold (https://support.gusto.com/article/106622213100000/view-and-download-your-1099-nec-for-contractors, https://support.gusto.com/article/106622233100000/distribute-1099-nec-forms-to-your-contractors). For 2025 payments, recipient statements were due February 2, 2026 (https://www.irs.gov/instructions/i1099gi). This page explains the rules for firm review workflows. It is not tax or legal advice.

Who this page is for

This page is for accounting firms, bookkeepers, and business owners reviewing the year-end contractor workflow inside Gusto. Every Gusto capability statement is tied to Gusto's current help center. Gusto updates those articles frequently, so the implementation scan must verify the live pages again before publication.

What Gusto documents as included

Gusto's contractor and distribution articles say it files Form 1099-NEC with the IRS and required states for U.S. contractors whose payments are reported in Gusto. Gusto reports contractor earnings in box 1 as nonemployee compensation and says it files 1099-NECs even when payments fall below the applicable federal reporting threshold (https://support.gusto.com/article/106622213100000/view-and-download-your-1099-nec-for-contractors, https://support.gusto.com/article/106622233100000/distribute-1099-nec-forms-to-your-contractors).

Gusto's current help center contains conflicting local-agency statements. Its dedicated limitations sections say Gusto does not file Form 1099-NEC with local tax agencies, while an earlier note in the distribution article says required federal, state, and local copies are sent to tax agencies. Firms should confirm local-agency coverage with Gusto before relying on it (https://support.gusto.com/article/106622213100000/view-and-download-your-1099-nec-for-contractors, https://support.gusto.com/article/106622233100000/distribute-1099-nec-forms-to-your-contractors).

Gusto also says it does not support contractor backup withholding, state-specific contractor withholding, or non-U.S. contractor withholding and reporting. Those items must be handled outside Gusto when they apply (https://support.gusto.com/article/106622213100000/view-and-download-your-1099-nec-for-contractors, https://support.gusto.com/article/100739998100000/add-and-pay-us-contractors-in-gusto-for-admins).

Payment-year thresholds come from the primary sources

Gusto's current help center contains conflicting federal threshold statements in the same live articles. This page therefore uses the federal primary sources for payment-year threshold statements.

For nonemployee compensation paid in 2025, the reporting threshold was $600 under the April 2025 instructions (https://www.irs.gov/pub/irs-prior/i1099mec--2025.pdf). For nonemployee compensation paid in 2026, Public Law 119-21, section 70433 raises the threshold to $2,000 (https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.pdf). Gusto's capability statement is narrower: it says it files forms for payments reported in Gusto even when the amount is below the applicable threshold.

Drafts, final forms, and delivery

Gusto says draft Forms 1099-NEC become available for admin review in mid-December. Final forms become available in contractor accounts in mid-to-late January, and Gusto emails contractors when their forms are available (https://support.gusto.com/article/106622213100000/view-and-download-your-1099-nec-for-contractors, https://support.gusto.com/article/211230124511400/correct-a-1099-nec-or-stop-a-filing-for-admins).

For 2025 payment-year forms, Gusto documented four delivery options:

Have Gusto mail the forms by placing the order by January 23 for a February 2 postmark.
Download, print, and mail the forms.
Download the annual employer packet and distribute printed copies in person.
Deliver forms electronically after the contractor gives consent.

Gusto says contractors receive an email that the form is available in their account regardless of the selected delivery method (https://support.gusto.com/article/106622233100000/distribute-1099-nec-forms-to-your-contractors).

A paper copy is required unless the contractor consents to electronic-only delivery. Gusto's contractor article says the delivery preference remains active until the contractor changes it or leaves the company (https://support.gusto.com/article/106622213100000/view-and-download-your-1099-nec-for-contractors).

The electronic W-9 workflow

Gusto says contractors complete an electronic Form W-9 in Gusto. Once signed, that electronic form cannot be edited. When a contractor does not use Gusto's electronic W-9, the business must retain the signed paper copy. When information changes, Gusto directs the contractor to complete the form manually and upload it to the contractor profile, where it appears as Taxpayer Identification (Form W-9) (https://support.gusto.com/article/100739998100000/add-and-pay-us-contractors-in-gusto-for-admins).

This workflow covers contractors maintained in Gusto. A firm's wider vendor population may still require a separate W-9 collection and review process.

Payments made outside Gusto

Gusto allows admins to record contractor payments made outside Gusto as historical payments before its early-January year-end deadline. Historical payments alone do not create a Form 1099-NEC filing. Gusto says the company must also satisfy its activity requirement and have a signed Form 8655 on file (https://support.gusto.com/article/100739998100000/add-and-pay-us-contractors-in-gusto-for-admins).

The activity requirement is satisfied when the company processed at least one standard contractor payment or one regular or off-cycle employee payroll through Gusto before the deadline. Gusto says employee payroll activity can make the account active for 1099 filing even when a contractor has only historical payments recorded (https://support.gusto.com/article/100739998100000/add-and-pay-us-contractors-in-gusto-for-admins).

When Gusto did not create an original 1099 before the deadline, its current guidance directs the filer to file the new 1099 outside Gusto. When a prior-year Form 1099-NEC was already filed and a historical payment is added later, Gusto directs the admin to use its correction workflow (https://support.gusto.com/article/100739998100000/add-and-pay-us-contractors-in-gusto-for-admins, https://support.gusto.com/article/211230124511400/correct-a-1099-nec-or-stop-a-filing-for-admins).

Stopping and correcting Gusto filings

Gusto's current correction article says admins can correct contractor details while a form remains a draft and can submit certain corrections after a form is final. Amount corrections can be submitted through the 1099 workflow. Final name, SSN, or EIN corrections require updating the contractor record and contacting Gusto (https://support.gusto.com/article/211230124511400/correct-a-1099-nec-or-stop-a-filing-for-admins).

Admins can also turn filing on or off through the 1099 filing controls. Draft forms appear in mid-December, and the stop-filing setting can be changed before Gusto's mid-January filing deadline. The setting remains in place for future years until it is changed (https://support.gusto.com/article/211230124511400/correct-a-1099-nec-or-stop-a-filing-for-admins).

The IRS-side correction rules for forms filed outside Gusto belong on the corrected 1099 page.

Gusto coverage and firm-side work

Gusto's current documentation	Firm-side review or separate process
IRS and required-state Form 1099-NEC filing for eligible U.S. contractors with payments reported in Gusto	Confirm local-agency coverage because Gusto's current help articles conflict
Box 1 reporting and filing below the applicable federal threshold	Determine the applicable payment-year threshold from primary sources
Electronic W-9 collection for contractors using Gusto's workflow	Retain paper W-9s and manage W-9s for vendors outside the Gusto contractor population
Historical-payment entry when account activity and authorization requirements are met	File outside Gusto when no original was created before the deadline
Draft review, stop-filing controls, and documented correction workflows	Handle unsupported withholding and any filings outside Gusto

Extend vendor readiness beyond the Gusto contractor list

Disclosure: W9Finder is our product. Gusto handles contractor payments and its documented Form 1099-NEC workflow. W9Finder handles W-9 collection and vendor readiness across the wider vendor list: firms can import vendor CSVs per client, flag missing W-9s and incomplete records, send private request links with tracked reminders, and export reviewed, 1099-ready vendor files for the filing process that covers each vendor. W9Finder does not pay contractors or file information returns. Explore W9Finder

FAQ

Does Gusto file Forms 1099-NEC?

Gusto's current documentation says it files Form 1099-NEC with the IRS and required states for eligible U.S. contractors with payments reported in Gusto. Its dedicated limitations sections say local Form 1099-NEC filing is unsupported, although another current line says required local copies are sent. Confirm local-agency coverage with Gusto before relying on it (https://support.gusto.com/article/106622213100000/view-and-download-your-1099-nec-for-contractors, https://support.gusto.com/article/106622233100000/distribute-1099-nec-forms-to-your-contractors).

When do contractors receive their Gusto 1099?

Gusto says final forms become available in contractor accounts in mid-to-late January. For forms reporting 2025 payments, recipient statements were due February 2, 2026. Paper copies were required unless the contractor consented to electronic-only delivery (https://support.gusto.com/article/106622213100000/view-and-download-your-1099-nec-for-contractors, https://support.gusto.com/article/106622233100000/distribute-1099-nec-forms-to-your-contractors, https://www.irs.gov/instructions/i1099gi).

What happens to contractor payments made outside Gusto?

Gusto permits historical-payment entry before its early-January deadline. Historical payments alone do not create a filing. The company must meet Gusto's activity requirement and have a signed Form 8655 on file. When Gusto did not create the original form before the deadline, its guidance directs the filer to file the new Form 1099-NEC outside Gusto (https://support.gusto.com/article/100739998100000/add-and-pay-us-contractors-in-gusto-for-admins, https://support.gusto.com/article/211230124511400/correct-a-1099-nec-or-stop-a-filing-for-admins).

Does W9Finder replace Gusto?

Disclosure: W9Finder is our product. The products address separate workflows. Gusto handles contractor payments and its documented Form 1099-NEC process. W9Finder handles W-9 collection, missing-record follow-up, and reviewed vendor exports across the firm's broader vendor list.