If you own a business, you are required to issue 1099s to all service providers who are not corporations who you pay $600 or more by cash, check, or cash equivalent (E.g. Zelle.)
The $600 threshold was established in 1954 and never adjusted for inflation. If it had been adjusted for inflation, the threshold would be around $7000 today!
The One Big Beautiful Bill provides some relief to business owners. Starting in 2027 (for payments made in 2026) the 1099 threshold will go from $600 to $2000. And it will be inflation-adjusted for future years (H.R.1 §70433)
Unfortunately 1099s issued in January 2026 for 2025 payments are still under the old $600 rule.
For more information, see the FTB website HERE.