Independent contractor or employee. Generally, you must report payments to independent contractors on Form 1099-MISC in box 7. See the instructions for Box 7. Nonemployee Compensation on page MISC-4. Additional requirements for relief are discussed in Rev. Proc.
Transit passes and parking for independent contractors.
Although you cannot provide qualified transportation fringes to independent contractors, the de minimis fringe rules for transit passes and parking apply to independent contractors. The value of parking may be excludable from an independent contractor's gross income, and, therefore, not reportable on Form 1099-MISC if certain requirements are met. You must report directors' fees and other remuneration, including payments made after retirement, on Form 1099-MISC in the year paid. Report them in box 7. Commissions paid to lottery ticket sales agents.