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Paying subcontractor with PayPal

I pay our subcontractors only through PayPal.  How do I go about filing their 1099s if I do that? It is telling me I cannot submit them online if I paid them through PayPal.  

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Anonymous
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Re: Paying subcontractor with PayPal

Hello, @oandj.

 

Thanks for joining the Community. I'm here to help provide clarification about paying through PayPal for your 1099s.

 

Payments you made by payment networks like PayPal are excluded from a vendor's 1099. Instead, the payment companies report those payments to the IRS for you. PayPal will issue Form 1099-K to your contractor so you do not need to send Form 1099-MISC.

 

For any questions you might have about 1099-MISC in the future, you can refer to this helpful article: Frequently asked questions about form 1099-MISC in QuickBooks Online.

 

That should do it and have you on the right path. 

 

Please don't hesitate to let me know if you have additional questions about filing 1099s. I'm always here to help. Wishing you a productive week ahead.

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