1099-MISC forms are used to report miscellaneous types of payments made by a business outside of wage costs, such as licensing fees, royalties paid, prizes given out, and rental property payments. It reminds the recipient of payments that they must pay taxes on that miscellaneous income earned. It provides documentation that tells them exactly how much they've received from your business. For forms used to report on wages, see W-2 or 1099-NEC