Agents are independent contractors and most vendors are paid through the platform — so at year-end the brokerage owes each of them a 1099-NEC for non-employee compensation of $600 or more. Pure totals every payout per payee, drafts the form, masks the TIN, and e-files the batch with the IRS and the state. Anyone under the threshold is flagged and skipped.
Box 1 totals are pulled from each payee's net non-employee compensation across the tax year. The $600 threshold is applied automatically — payees below it (like a departed agent with one small deal) are flagged below threshold and excluded from the filing batch, but kept on the record.