They changed it.

Did you pay your contractors with a check? Then give them a 1099 which was changed for 2020. Case closed.

If you paid them with a 3rd party processor ie Paypal, Venmo, Square etc. the Feds (IRS) don’t care, but now the State of California who is broke because of EDD will now make 3rd parties give a 1099k regardless of transactions.

To verify check check the inbox of the 3rd party as they are giving out the forms now.

However the message you received is correct. You don’t want to give them a 1099 if the 3rd party processor will give them a 1099-k.

I hope this helps.

Steph