PayPal, Venmo, other 3rd Party Merchants, manual entry to QB to not be considered in 1099-NEC, only 1099-K

Hello, KJ204.  

Thank you for reaching out to the Community. If you have vendor payments like credit, debit, or gift card, and third party system like PayPal, then these payments are excluded in the 1099 form.   

You can open this article to view details on which payments are not included in the 1099 forms: Understand which payments are excluded from a 1099-NEC and 1099-MISC.

To learn more about the difference between 1099-MISC and 1099-NEC, you can refer to the links below that provide the complete details: 

• Create and file 1099s with QuickBooks Desktop 
• Understanding payment categories for the 1099-MISC and 1099-NEC 

I'm also adding this article so you'll be able to see other related information about 1099 and be updated with this form: Get answers to your 1099 questions.   

Drop by again if you have additional questions. I'll be around to help anytime. Stay safe!

Thank you for your response.  I understand what goes on a 1099-NEC and 1099-K, I just don't want to have a subcontractors income duplicated by entering it incorrectly.

My client does not have a PayPal or Venmo "Bank Account", each single transaction that goes through PayPal goes straight to their company bank account.  I want to know how to enter the PayPal contractor payments directly to the real bank account and not have it show up on their 1099-NEC's.  Is there some way I can enter each PayPal subcontractor transaction to the bank account that will not show up on the 1099-NECs that will be mailed out next year (i.e., PayPal as the Payee and the subcontractor name in the Memo field)?  Do you have a solution yet for the new mandate for Third Party Merchant payments like ours?  

Thanks for following up with the Community, KJ204

To properly identify how you can enter a subcontractor's banking transactions so that they don't show up on their 1099 forms, I'd recommend working with an accounting professional. If you're in need of one, there's an awesome tool on our website called Find an Accountant. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.
 

Here's how it works:

1. Go to our Find an Accountant page.
2. In the Find an expert in section, choose what you're looking for, then use your search field to enter a City or ZIP code.
   
3. Select Search.
   
4. Browse through the results and find one that works best for your business. You can click on each ProAdvisor's profile to learn more information about them.
   

Once you've found an accountant, they can be contacted through their Send a message form:

1. Use the available text box to introduce yourself. Be sure to include details about which services you're looking for.
   
2. Enter your appropriate info in the Your name, Your email, and Your phone number (optional) fields.
   
3. Hit Send message.
   

I've also included a detailed resource about working with banking transactions which may come in handy moving forward: Add & match Bank Feed transactions

If there's any additional questions, I'm just a post away. Have an awesome day!