Does PayPal issue 1099s on my behalf?

[missjenec]

I understand that if I receive more than 200 payments totalling more than $20,000 that I receive a 1099.  Does that mean that if I am among a number of people who are paying a consultant using PayPal and that person receives more than that threshold, that he too will receive a 1099?  If the answer is yes?  Well, does that mean that I do not have to issue my own 1099 to him even if my payments total more than $600?

[snowshoe]

Yes.  And you issue the 1099 to your consultant if you paid him or her $600 or more during the tax year.

[missjenec]

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@snowshoe wrote:

Yes.  And you issue the 1099 to your consultant if you paid him or her $600 or more during the tax year.

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Doesn't that mean that his first 1099 from PayPal will contain the same $600 amount as my own 1099 to him?

[snowshoe]

The info will be on your form but, you have to issue him the form.

If you’ve got your own accountant or payroll service, then you can pay them to generate the proper forms and send out these 1099s, else you do it yourself.