What should I know about a 1099-MISC?

You do not need to provide 1099-MISC forms to Workers. Payment is made to Workers electronically through the GigSmart platform. Therefore, a 1099-K is issued by your payment settlement agency (credit card, debit card, PayPal). For certain third party network transactions, the payment processor only has to issue a 1099-K if the total amount of such transactions exceeds $20,000 or the aggregate number of transactions exceeds 200. Since Workers are 1099-K, the expense should be labeled in the “Outside Services” expense category within your accounting software (Quickbooks, etc.). The expense should not be recorded in the 1099-MISC section of your accounting system since these Workers received payment electronically as outlined above. For more information, please visit the IRS website.