For strip clubs paying feature entertainers, DJs, promoters, hosts and other contractors, and their bookkeepers

Cash at the end of the night. A 1099 in January.

Envelope keeps every payout to a contractor — fee, tips passed on, or prize; cash, cheque, transfer, app or card; signed for or not — and every contractor’s W-9. In January it builds each 1099-NEC with boxes 1a, 1b and the tip occupation code in 1c, each 1099-MISC prize, and who needs no form and why.

Open the demo See pricing

Opens in this browser with an invented club already in it. No account, no email address, nothing installed.

Open the free demo →

The problem

The line moved, and the form grew boxes.

For tax years beginning after 2025, nonemployee compensation of $2,000 or more goes on a 1099-NEC, furnished and filed by January 31. Tips the club passes on now go in box 1a and again in box 1b, with a Treasury tipped occupation code in 1c. A prize goes on a 1099-MISC. A W-9 comes before the first payout, or 24% backup withholding applies.

$2,000

of nonemployee compensation, and a 1099-NEC is owed, for tax years beginning after 2025.

IRS 1099-NEC instructions →

January 31

the date to furnish the form to the contractor and file it with the IRS.

IRS 1099-NEC instructions →

24%

backup withholding owed on payouts to a contractor with no taxpayer ID on file.

Will not mark a form sent that is not right.

Not a reminder. Sent refuses, with the reason named, while the year is still running, or while a W-9, a tip occupation code or owed backup withholding is missing. A payout to someone with no W-9, an unsigned cash payout, and a card or app payment that belongs on the 1099-K are each named as they are written down.

How it works

Contractors, payouts, forms

Add each contractor

Legal name, role, kind of entity, the W-9 date with only the last four digits, and their tip occupation code.

Write down each payout

Fee, tips or prize; how it was paid; signed for on the sheet; backup withholding held.

Build the forms

Each 1099-NEC and 1099-MISC for the year, who needs none and why, and the dates. Mark each one sent.

What it will never do

It builds the list. It files nothing.

Envelope keeps only the last four digits of a taxpayer ID, and sends nothing to the IRS.

No full SSNs.The last four digits only. The W-9 itself stays in your file.

No filing.You file the forms; Envelope gives you every box.

It is not an accountant.Classification questions go to yours.

It never touches a payment.The subscription is for software.

Pricing

Priced per club

Less than one DJ’s Friday.

Most clubs

One club

$12/month

One club and everyone it pays off payroll.

Every payout, every method
1099-NEC boxes 1a, 1b, 1c
Sent gate, no override

One club, yearly

$120/year

The same, two months free.

Everything in One club
1099-MISC prizes
Export for your bookkeeper

Subscription. Your bank statement says Envelope Software. Refunded in full on request within 30 days. Your licence key is emailed to you within two working days of payment.

Checkout is our own bitcoin server, not a card processor — nobody we had to apply to and nobody who can close the account. The button takes you straight to it. Give your email address there — that is where your key is sent.

Questions

The ones we actually get asked

What about payments by card or app?

A card payment, or an app’s goods-and-services button, belongs on the 1099-K, not the club’s 1099-NEC. Envelope sorts them out.

Do corporations get a form?

Generally not. Envelope lists them under who needs no form, and why.

What is the tip occupation code?

The Treasury code for the job that earned the tips — Dancers is 205. It goes in box 1c.

Is this tax advice?

No. It is the list your bookkeeper builds every January by hand.

What do I actually get when I pay?

The demo on this page is the whole program, running on invented records. Paying gets you a licence key — one line of text, emailed to the address you give at checkout within two working days. Paste it into the program and from then on it keeps your own records. Until then, nothing you type into it is kept.

The key is checked inside the page, on your own machine. It never calls us, so there is still no account and nothing about your business goes anywhere. If you ever stop paying, your records stay exactly where they are, read-only, and Export still hands you every one of them.

Open the demo before January

A DJ was paid cash every Friday with one payout unsigned. A feature was paid before her W-9 arrived, with no backup withholding and tips with no code. There is an amateur-night prize, a promotions corporation, a guard paid by app and a host under the line. Envelope sorts every one.

Open the demo See pricing