Q.You hired a graphic designer to do a lot of work over the course of the year, paying them $2,250, through PayPal. Should you have a 1099 for the designer?
A. NO. You should record the payment in QB as having been made via PayPal, and QB will know to exclude the payment from a 1099. It is PayPal’s responsibility to issue the 1099 to the graphic designer, showing all the payments they received from all clients.