If you are paying contractors in the U.S. in connection with a trade or business, and you pay any one of them in aggregate in excess of $600, you are required to prepare a 1099 form. In aggregate means that if you paid someone $ 400, and then later paid them $ 201, youu2019d be liable to prepare the 1099.If you pay persons that are not in the U.S., then your only requirement is to ascertain that they are not U.S. citizens or U.S. permanent residents. If either of those situations apply, then the $ 600 rule applies.