There are guidelines set out by the IRS indicating when a 1099 form must be issued. For example, if you pay a contractor more than $600 in a calendar year, you are supposed to present him with a 1099 form showing his earnings for the year.
You probably won’t need to change the threshold amounts that are already listed in the Tax 1099 Company Preferences window (see Figure C.22) because these amounts comply with the federal guidelines.