Well, February 2 is the day you have to get 1099MISC statements to your vendors. What happens if you paid your vendor by PayPal or credit card; do you still have to send 1099s to them? The answer is no – see this posting in Small Business Trends by Anita Campbell for the reasons:
http://smallbiztrends.com/2015/01/1099-contractors-paypal-credit-card.html
Since the electronic processors send the info to the vendor on a form 1099K, you are off the hook for reporting – they do it for you. Just remember if you send a check you still have to 1099 those vendors.
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