Small builders & GCs hub · By James Grokman, CEO, TapeAndFloat · Published October 25, 2026 · Updated October 25, 2026

W-9s and 1099-NEC for subs: a simple year-round system

A W-9 and 1099-NEC system for subs means you get a Form W-9 from every sub before you pay them, log every payment by payee, and know by January which subs were paid enough during the year to need a Form 1099-NEC.

Free download: W-9 & 1099-NEC sub payment tracker (Excel). A Payees sheet with the date each W-9 came in, a Payments sheet, a total per payee for the tax year, and flags for subs paid with no W-9 on file, payees over the reporting threshold, corporations to confirm and payments to someone not on your list. The threshold and tax year are editable Settings. The example rows are labeled; delete them before you start. No email required.

This is general information, not tax advice. Rules change; check irs.gov each year and ask your tax preparer about your own situation.

1. What the W-9 is for

Per the IRS, a sub uses Form W-9 to give their correct taxpayer identification number (TIN) to the person who has to file an information return about them, which here is you. The W-9 also shows their name and tax classification (individual, LLC, corporation and so on), which matters later.

2. Get the W-9 before the first payment

Make "W-9 received" part of setting up a new sub, next to their insurance certificate. The simplest rule for your office: no W-9, no first check. Chasing a W-9 in January from a sub who finished in March is the hard way. If a payee does not give you a TIN, the IRS instructions say payments that must be reported can be subject to backup withholding, currently 24% per the Form W-9 requester instructions; ask your preparer before it comes to that.

3. Keep the W-9, not the number, in your spreadsheet

Store the signed W-9 somewhere secure. In your tracking sheet, write the date it came in and the entity type, not the full Social Security or EIN number. Anyone who opens the sheet should not be able to read a sub's tax ID.

4. Log every payment by payee

One row per payment: date, payee (spelled the same every time), amount, method and job. Totals per payee then add up on their own. Note the method: the IRS instructions say payments made by credit or payment card, and certain third-party network payments, are reported on Form 1099-K by the payment company and not on Form 1099-NEC. Keep those in the log but separate, and ask your preparer about payment apps.

5. Know the threshold for the year

The IRS Instructions for Forms 1099-MISC and 1099-NEC (revised December 2026) say that for tax years beginning after 2025 the reporting threshold rose to $2,000 and may be adjusted for inflation beginning in 2027. For payments you make in 2026, that means a 1099-NEC for each non-employee you paid at least $2,000 for services in the course of your business (parts and materials included). The tracker keeps the threshold in a Settings cell so you can update it each year.

6. Corporations, attorneys and materials

Per the same instructions, payments to a corporation (including an LLC treated as a C or S corporation) are generally not reported on 1099-NEC, but payments for legal services are, even to a corporation. Payments for merchandise, freight, storage and similar items are not reported on 1099-NEC either. The W-9 tells you how a payee is classified; when a case is unclear, ask your preparer.

7. The January deadline

The IRS instructions say Form 1099-NEC goes to the recipient and to the IRS by January 31, and if that date falls on a Saturday, Sunday or legal holiday, the due date is the next business day. January 31, 2027 is a Sunday, so for 2026 payments that works out to Monday, February 1, 2027; confirm on irs.gov. In early December, sort the tracker by total paid, check every payee over the threshold has a W-9 and a mailing address, and hand the list to whoever files your 1099s. Year-end cost questions belong with your job cost tracking. Landlords who pay vendors can use the W-9 and 1099 guide for landlords.

Where an assistant helps

The step that slips is asking for the W-9 before the first payment. During the pilot, TapeAndFloat flags subs you have paid with no W-9 on file and drafts the W-9 request for you to approve; nothing goes out until you approve it, and during the pilot a real person reviews everything. TapeAndFloat does not file 1099s or give tax advice; that stays with you and your preparer.

Free 60-day pilot: keep working in your own phone, email and Google Sheet. Request a pilot spot.

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Frequently asked questions

When should a contractor get a W-9 from a sub?

Before the first payment, as part of setting up the sub. Per the IRS, the W-9 is how a payee gives you their correct taxpayer identification number for the information returns you file. This is general information, not tax advice.

What is the 1099-NEC threshold for payments in 2026?

The IRS Instructions for Forms 1099-MISC and 1099-NEC say the threshold is $2,000 for tax years beginning after 2025, and may be adjusted for inflation beginning in 2027. Check irs.gov each year and ask your tax preparer.

When is Form 1099-NEC due?

Per the IRS instructions, by January 31 to both the recipient and the IRS, or the next business day if January 31 falls on a weekend or legal holiday. For 2026 payments that is Monday, February 1, 2027; confirm on irs.gov.

Do I send a 1099-NEC to a sub that is a corporation?

Generally no, per the IRS instructions, except for payments for legal services, which are reported even when paid to a corporation. Use the tax classification on the sub's W-9 and ask your preparer about unclear cases.

Do card or payment app payments to subs go on a 1099-NEC?

The IRS instructions say credit and payment card payments, and certain third-party network payments, are reported on Form 1099-K by the payment company, not on Form 1099-NEC. Ask your preparer how to treat payment apps.

Free tools

Sub and vendor paperwork tracker (Excel): flags missing W-9s and COIs, expiring COIs and payments without an unconditional lien waiver.
Delay log (Excel): one row per delay (job, start and end dates, cause, what happened, days lost, who owns it, client notified with date and how, client written OK, schedule updated, new delivery date, change order needed and number, cost impact, photos/daily log link), a Jobs sheet with totals per job and a Start Here summary; flags no written notice to the client, notice later than your Settings, client decision with no written OK, backorder with no new date, change order needed with no number, days lost blank and open delays; Settings values are examples, notice terms are set by your contract.
Daily log & job photo tracker (Excel): one row per job per day (crew and sub counts, weather, work done, deliveries, inspections, visitors, delays and cause, client instructions, safety notes, photos folder link), a Jobs sheet and a Missing Logs sheet that marks workdays with no log; flags no photos link, delay with no cause, client instruction not turned into a change order, inspection with no result and blank crew counts; workdays and lookback on a Settings sheet.
W-9 & 1099-NEC sub payment tracker (Excel): a Payees sheet (entity type, W-9 received date, mailing address; never the full tax ID) and a Payments sheet (date, payee, amount, method, job), with a total per payee for the tax year and flags for paid with no W-9 on file, W-9 after the first payment, over the reporting threshold (editable; $2,000 for 2026 payments per irs.gov), corporations to confirm, attorneys, missing address, card/app payments and payments to someone not on the list. General information, not tax advice.
New lead intake log (Excel): one row per homeowner inquiry (date received, source, contact, job type, first reply, next step and date, status, quote sent, last contact), with flags for no reply yet, next step overdue, quoted with no follow-up and stale leads; thresholds on a Settings sheet.
Bid pipeline & quote follow-up tracker (Excel): one row per bid with sent and price-hold dates, a touch log, next follow-up worked out from day 3/7/14 (editable), and flags for follow-ups due or overdue, quotes expiring or expired while open, bids at the stop point, no sent date, won without amount and lost without reason.
2-week lookahead: subs & inspections schedule (Excel): one row per job per task with start and end dates, confirm-by dates from your settings, inspection requested/date/result, depends-on, Now/Week 1/Week 2 view, and flags for subs not confirmed, inspections not requested, failed inspections with no re-inspection, the same sub on two jobs at once, no sub assigned and starts before a dependency ends.
Permit & inspection log (Excel): one row per permit per job (type, number, applied/issued/expiration dates, card posted, final/closeout, fees, responsible) and one row per inspection (needed by, requested, result, re-inspection), with editable Settings and flags for permits expired or expiring soon, no permit number, not issued yet, inspections not requested by your lead time, failed with no re-inspection, work done but final not passed and fees unpaid.
Material orders, deliveries & returns tracker (Excel): one row per order line (supplier, PO, qty ordered and delivered, promised and delivered dates, ticket checked, backorder date, substitution approval, invoice match) and one row per return (RMA, expected and received credit, restocking fee), with flags for late or short deliveries, backorders past date, unmatched invoices and missing or short credits.
Job budget vs actual tracker (Excel): budget lines by job and cost code, actual costs from bills and receipts, signed change orders added to the budget, variance $ and %, and flags for lines over or near budget, costs with no job, cost code or budget line, and change orders not signed or not billed.
Punch list & warranty callback tracker (Excel): sets each due date from the reported date (punch and warranty days editable) and flags items past due or due soon, items with no sub assigned, items closed without homeowner sign-off or photos, and back-charges not billed.
Allowance & client selections tracker (Excel): works out each overage and its change order amount with your markup, and flags selections past due or due within 14 days, overages without a signed change order, signed overages not billed and credits not applied.
Unbilled change order calculator: what missed extras cost you a year, using your own numbers.
Texas lien deadline calculator: notice and lien affidavit dates under Property Code ch. 53 for any month of work.
Free office tracker (Excel): flags unsigned and unbilled change orders and past-due invoices.
Weekly office checklist (PDF): change orders, invoices, retainage, lien notices, COIs and crews on one page.

All free, no sign-up.

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