Tax reporting for Independent Contractor NQDC.

[ERISA-Bubs]

My understanding is that we do not have to report Independent Contractor NQDC deferrals (Form 1099-Misc, line 12 -- the instructions say this is not required).  However, payments to Independent Contractors under a NQDC Plan are to be reported in Box 1 in the year paid.  This is how we've been handling this.

The problem is we have an Independent Contractor who we paid NQDC to, and reported the payment on Form 1099.  The SSA is now saying the reported payment disqualifies the Independent Contractor from Social Security Retirement Benefits.  They are asking we correct this using Social Security Form SSA-131, but that form only appears to apply to employees (not independent contractors).

I'm having a bit of trouble determining how to correct this.  I'm also not finding straight forward information on whether we reported the payment correctly in the first place. 

• Should Independent Contractor distributions from a NQDC plan be paid using Form 1099-Misc?  The instructions are unclear, unless the payment violates 409A (in which case you use Box 15), but that is not the case here.
• I found some guidance that suggests we use Form 1099-NEC, Box 1, but the instructions for that form don't seem to support this, and I'm not sure it would have helped.

Please help!