sweetgum

what counts toward the $600 threshold

not every payment to a contractor counts toward the 1099 threshold. cash and check do. credit-card and third-party-network payments don't (those get reported on a 1099-k by the processor, not by you).

3 steps~2 min
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  1. 1

    do count

    checks, ach, zelle, cash, money orders. anything paid directly out of your bank or by hand.

  2. 2

    don't count

    credit card payments processed through stripe / paypal / venmo-business. those are 1099-k territory — the processor files for the contractor, not you.

  3. 3

    it follows the bluejay tag

    when you log a payment in bluejay, the method (check / zelle / cash / ach) determines whether it counts. card and processor payments are excluded from the sweetgum rollup automatically.

    tip

    ask your cpa how they want to handle it for any contractor where you pay both ways during the year. usually they want a 1099-nec for the cash/check portion, not the card portion.

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