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Understanding the NACHA Payroll Entry Description Requirement for ACH Payments
March 6, 2026
Q. Is the new NACHA rule indicator of PAYROLL only applicable to 1099 non-employee compensation payments to individuals? For example, would it not apply to non-employee compensation payments to LLC-Partnerships or other 1099 reportable companies? Also, if there are multiple ACH credit payments to an individual at the same time and one invoice is subject to 1099 reporting but the other invoice is not subject to 1099 reporting, does it matter if both invoices are indicated as PAYROLL payments in…
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