Joint Payees: Who Gets the 1099?

Question

My company sometimes make payments to indiviuals to vacate a property in an efficient and orderly fashion. How is this reported if two individuals, with separate SSN's, are paid on the same draft? Do I just send the 1099MISC to the first person named or do I send a 1099MISC to each of them? If both, what amount do I report - the full amount to each individual or half to each?

Answer

Let's start with the general rule and then apply your particular facts and circumstances involving your questions and as follows (in the order asked):

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