This is the first year where I've had several VAs making over $600+ with me. I was in the process of sending out all their 1099-MISC's with Intuit e-File and got stuck because I saw this notice:
If you made any payments to contractors by credit card, debit card, gift card, or a third-party network like PayPal, the IRS requires you to exclude those amounts from your 1099-MISC forms.
Instead, they require the payment settlement companies to report those amounts.
For more information about the payments that you shouldn't report, review the IRS instructions for Form 1099-K. Remember: Small businesses don't file form 1099-K. It is for payment settlement companies, such as banks, to file.
Does that mean that I don't actually have to send my contractors any kind of 1099 if I've been paying them via Paypal?
I've called 3 accountants today and no one could give me a solid answer.
If you made any payments to contractors by credit card, debit card, gift card, or a third-party network like PayPal, the IRS requires you to exclude those amounts from your 1099-MISC forms.
Instead, they require the payment settlement companies to report those amounts.
For more information about the payments that you shouldn't report, review the IRS instructions for Form 1099-K. Remember: Small businesses don't file form 1099-K. It is for payment settlement companies, such as banks, to file.
Does that mean that I don't actually have to send my contractors any kind of 1099 if I've been paying them via Paypal?
I've called 3 accountants today and no one could give me a solid answer.
