Hi, thanks for writing. I did, in fact, pay my vendors through PayPal - just via the "friends/family" option which apparently won't send out 1099's. And QBO won't let me create manual 1099s which is all I want to do. 

Thanks for posting again, @cbemusic,

Payments through PayPal are excluded from Form 1099-MISC but should be reported in a 1099-K form. You can pull up this information in our program if you're using QuickBooks Payments for credit card, debit card, gift card, or a third-party payment network payments.

See this detailed article to learn more about downloading 1099-K forms in QuickBooks: Intuit 1099-K Form

However, for payments processed outside the program, the third-party provider should provide the 1099-K form.

In your case, if you pay a person or business via PayPal's Friends and Family option, you will need to a 1099-NEC to them. PayPal assumes it's a personal or non-business transaction and won't include it in their 1099-K.

If these payments are supposed to be reported in a 1099-K form, you can go to the IRS website and fill it our manually. Here is the link to get the IRS 1099-K Form

Let me know if you have anymore questions about this. Filing the correct forms is essential and I'm always here if you need further help with it. Have a good one!

Hi,

I paid the bill from a "Cash Payout" account.

"Paid bill using Cash Payout account (or use a barter account), I prefer something other than the operational account.

Then I went into the Cash Payout register and without using Joe Smith

I credited out the payment to Internet Advertising"