If I only pay vendors with Zelle do i need to process 1099?

Yes, MM2000. Payments via Zelle would still require 1099 reporting if you paid a vendor $600 or more.

Since Zelle payments are considered direct transfers and not processed by a third-party payment platform, you’ll have to include those payments when preparing your 1099 forms. However, payments made with credit cards, debit cards, gift cards, or PayPal don’t need to be reported on a 1099 because those companies handle the reporting for you.

For complete guidance on processing your 1099 forms, you can refer to this article: Create and file 1099s with QuickBooks Online.

If you have any additional questions, please let us know. We’re here to help.