I have a client who pays several Sub Contractors, some cash compensation and some non-cash compensation. They have a prior accountant who filed both 1099-NEC (cash compensation) and 1099-MISC (non-cash compensation) for each contractor who made a combined $600 or more. Example: the NEC may be $400 and the MISC $200 so the contractor received 2 1099s equaling $600. 

My take on the IRS requirements for employers reporting these forms are: the 1099-NEC needs to be $600 or more, and the 1099-MISC needs to be $600 or more. Since neither one met the limit, the employer is not required to file a 1099 for that contractor at all. The contractor is of course required to report all the income from his/her own records on their tax return.

How would you report compensation in this situation?