Hey there, @Buddy23.
It's great to see a new face here in the Community!
First Answer:
You can easily pay your contractors through direct deposit with QuickBooks Online or paper checks.
Second Answer:
Yes, using projects can affect payroll depending on what all you track within them: Create and manage projects.
Third Answer:
Once you set up these contractors, you can track them for 1099s if you'd like.
I recommend reviewing each and every guide listed. If you have any further questions, don't hesitate to ask. Have a wonderful day!