The tax form mailing method applies to 1099 workers who want to receive a paper version of their 1099 forms. Payable can automatically print and deliver these for you. Or, you can print PDF versions yourself. Here's how you can change those settings to what's best for your business:
Perhaps a better question is: Do I like finding stamps, folding paper, and licking envelopes? If not, then the Automatic method is perfect. There's no work involved. Payable will automatically create and deliver the forms to your workers.
The $1.99 per form covers creation, postage, delivery, and tracking.
The Manual method allows you to download a PDF version of each form your workers require. You can then print each PDF and deliver to your workers yourself.