On our end, got our 1099-K from Paypal today (for payments we received in the business). Here's what it says:
You have received this form because you have either: (a) accepted
payment cards for payments, or (b) received payments through a third
party network that exceeded $20,000 in gross total reportable
transactions and the aggregate number of those transactions
exceeded 200 for the calendar year. Merchant acquirers and third
party settlement organizations, as payment settlement entities (PSE),
must report the proceeds of payment card and third party network
transactions made to you on Form 1099-K under Internal Revenue
Code section 6050W. The PSE may have contracted with an
electronic payment facilitator (EPF) or other third party payer to make
payments to you.
So it seems that this is an AND condition: payments have to exceed $20,000, AND the number of transactions must exceed 200.
Per what MP123 wrote up-thread,
The 2022 tax year is transitional for 1099-K, it isn't required below $20,000 and 200 transactions. Then next year should be $600 and any number of transactions to align with 1099-NEC requirements.
So, it's possible that the contractor will not receive a 1099-K from Paypal for last year. It's not clear that you would have a 1099-NEC filing requirement in this case, but I suppose that's possible.
I think this is what's happening - Paypal issued a 1099-K to us, but since our contractor doesn't meet those volume requirements, we have to issue him a 1099-NEC. Right?