Get Ready for 1099 Filing: What Bridal Shops Need to Know Before 2026

If you’re a bridal shop owner who works with independent contractors—think seamstresses, contractors working on store buildouts or repair, marketing consultants, or web designers—you need to understand 1099 filings. The good news is that there are big changes to the 1099 reporting thresholds starting in 2026, making the filings less stringent. Nevertheless, you still need to follow 1099 rules if you pay contractors by check, cash, or cash equivalent.

Key Takeaways:

• Use Form 1099-NEC to report payments of $600 or more to non-employees like seamstresses, cleaners, or freelance marketers.
• The $600 threshold increases to $2,000 starting in 2026
• Use Form 1099-MISC for rent payments, prizes, or legal settlements—not contractor payments.
• Only file if you paid via cash, check, ACH, or direct deposit—not via credit card or PayPal Business.
• Collect a W-9 from every vendor before you pay them to get the correct legal name, address, and Tax ID.
• 1099s are due to the IRS and your contractors by January 31.

Important Update: 1099 Thresholds Are Changing in 2026

Heads up: The IRS is changing the reporting rules for third-party payment platforms, and it will affect many small business owners starting in 2026.

• For payments to non-employees (contractors, freelancers, etc.), the current $600 threshold for issuing a 1099-NEC (and similar non-wage payments on 1099-MISC) will increase to $2,000 under the new law.
  
• The new threshold takes effect for payments made after December 31, 2025 (i.e., when filing for the 2026 tax year).
  
• Starting in 2027, that $2,000 threshold will be adjusted annually for inflation. 

This change means that you may have fewer contractors eligible for 1099 filing starting in 2026. Don’t let your guard down, though. It’s still important to file 1099s for any contractors that are eligible in order to stay in compliance.

What Is Form 1099-NEC?

This is the form you’ll use most often as a bridal shop owner.

Use Form 1099-NEC (Nonemployee Compensation) if you:

• Paid $600 or more to a contractor, stylist, seamstress, or freelance service provider
• The $600 threshold increases to $2,000 starting in 2026.
• Paid them by cash, check, Zelle, Venmo (personal), or ACH
  
• They’re not taxed as a corporation (e.g., they’re a sole proprietor or LLC taxed as a sole prop)

You do not file a 1099-NEC if you paid via:

• Credit card
  
• PayPal Business
  
• Third-party platforms like Square or Stripe
  

Those platforms are responsible for sending out a 1099-K if applicable.

What Are Forms 1099-MISC?

The 1099-MISC (Miscellaneous Income) is still in use, but it’s for different types of payments, such as:

• Rent paid to a landlord (Box 1)
• Legal settlements (Box 3)
• Prize or award money (Box 3)
• Medical or health care payments
  
  

If you rent your bridal shop space from a private landlord, you probably owe them a 1099-MISC.

When Are 1099s Due?

• Whether you're filing a 1099-NEC or 1099-MISC:

  • Send the form to the contractor/vendor by January 31
    
  • File with the IRS by January 31 (electronically or via mail)
  • These forms need to be prepared after your books are closed and before the deadline.

  Late filings can trigger penalties of $60 to $660 per form, so don’t push this to the last minute.

Pro Tips for Bridal Shops

• Collect a W-9 before you pay anyone. This ensures you have the vendor’s legal name, entity type, and Tax ID.
• Track how you’re paying. You only need to issue 1099s if you pay outside of credit card or third-party processors.
• Double-check entity types. You don’t need to file for vendors who are S-Corps or C-Corps—unless they’re attorneys (yes, even incorporated law firms need a 1099-MISC for legal payments).
• Properly reconcile all of your bank accounts in an accounting platform such as QuickBooks Online to ensure accuracy before pulling amounts to report on 1099 forms.

Final Thoughts

If you’re hiring non-employees to help run your bridal shop, 1099s are non-negotiable. The IRS is cracking down on unreported contractor payments, and you don’t want to be on the wrong side of that audit.

By understanding the difference between 1099-NEC and 1099-MISC, collecting W-9s upfront, and filing on time, you’ll avoid penalties and build a more professional, compliant business.

Need help sorting out your contractor payments or other accounting issues? Let's talk! We work with bridal shops every day. Let’s make this tax season smooth and simple.