Hit me! …With all those 1099 and 1099K questions, son!
Well, here we go again. Tax season is like a leaky roof that you stick a bucket under for a while until a torrential downpour hits. All of a sudden you have to drop your to-do list and deal with taxes, like, right now! What a pain. You’re busy, you’re tired, and you’ve got stuff to do. Taxes are tough unless you have one of those sweet calculator left-brains yearning for equations, write-offs, loopholes, and tax codes. For the rest of us though, we love a little help, and that’s what PayLease is here for!
Let’s go over the basics of those pesky 1099-Ks.
What is a 1099-K?
The 1099-K “Payment Card and Third Party Network Transactions” document is an IRS tax form that reports the gross amount of funds that were processed through a Third Party Payment Processor (TTP) like yours truly, PayLease.
Who Receives A 1099-K Form?
This form is issued to any company who exceeded the Federal threshold of $20,000 and 200 transactions within the year through a TTP such as PayLease. However, certain states have taken steps to remove this threshold and set their own. Be sure to double check your state’s 1099-K filing threshold with a local tax professional. These volume thresholds are based on the unadjusted gross sales (per IRS regulations) of every transaction processed by any of the following: credit cards, ACH/eChecks, CashPay, Check21, PayPal, etc. And by ‘unadjusted,’ we just mean the total gross sales, prior to any adjustments for discounts, returns or refunds.
Does the Form 1099-K Apply to Non-Profit Organizations?
You’re sure right it does. Not even nonprofits can escape the age old rule – ‘the only certainties in life are death and taxes.’
What should I do with the Information on Form 1099-K?
Your 1099-K form is only an informational document. Use this in conjunction with your other tax records for your 2017 tax return. Definitely retain this form in the event your company is ever audited.
When Should I Expect To Receive Form 1099-K?
We mailed those suckers out mid-January (everyone loves snail mail, right?!). If you don’t receive it, please verify your mailing address with PayLease. You can do this by contacting your Client Account Representative, or by sending an updated mailing address to 1099K@paylease.com, and asking for a copy of the 1099-K form.
Will I Receive More Than One 1099-K Form?
You will receive one 1099-K for each entity that is set up within the PayLease system.
If you just read that and are freaking out like, “Woah guys, I need multiple 1099-Ks per entity!” (per bank account, for example), don’t fret! PayLease just needs to have the correct documentation including: (1) W-9 including Tax ID, (2) Legal Entity Name, and (3) Bank account(s) tied to the Tax ID from W-9 for each entity requesting a report. No problemo.
Hopefully we have kneaded out some of your 1099 stress with these FAQs, but if you still have any questions do not hesitate to give us a call! Pick up the phone and dial 1-866-PAYLEASE. We are here to help!