Let me provide information about contractors paid electronically, caroline59.
Payments to 1099 vendors made via credit card, debit card, or third party system, such as PayPal, are excluded from the 1099-MISC and 1099-NEC calculations. This is because the financial institution reports these payments.
These financial institutions will be the ones to report the payments made to the contractors.
You can run an Excluded Payments by Vendor report to verify excluded payments.
I'll be right here if you have more questions about the 1099 filing.