eSourcing works by using online software that includes a series of automated steps. These eSourcing steps include identifying and qualifying vendors, bidding, selecting one or more suppliers, and contracting to purchase goods or services.
Payers send a copy of the completed 1099 information returns to the payee, the IRS, and states with income tax. The payers batch all 1099-NEC returns completed using transmittal form 1096 when they file form 1099-NEC with the IRS. Form 1096 is titled Annual Summary and Transmittal of U.S. Information Returns.