For the past few months, we’ve been working with Stripe to build a full 1099 tax service for Stripe Connect. Starting this month, marketplace platforms using Stripe Connect (such as Handy and Postmates) will have the ability to seamlessly integrate their payments data with Payable’s new 1099 tax service. The service, including e-delivery and e-filing of forms, will be included for free as part of Stripe Connect. Here’s what the integration includes:
Importing and verifying contractor tax information. Stripe Connect platforms can easily sync their 2015 payments data and contractor tax identification information with Payable to generate 1099-MISCs or 1099-Ks. By inviting their 1099 contractors to Payable, we will alert companies if any additional tax information is needed for a contractor. If any information is lacking, we take care of collecting and storing it.
Generating 1099-MISC and 1099-Ks based on payments type, volume, and amount. After account payments and user identification data has been synced and stored, we offer companies the ability to classify payments for either 1099-MISC, 1099-K , or a mixture of both for certain contractors. We’ve built an entire 1099 Tax Center to help companies better understand requirements.
Online e-delivery or offline mail delivery to recipients (Due Feb. 1, 2015). Marketplaces can choose to send all contractors or vendors 1099 forms through electronic delivery (email and delivery through their Payable account — both printable) which will be free. Alternatively, marketplaces can mail hard copies of the forms, which will cost $1.99 per form.
E-filing with the IRS (Due March 31, 2016). The IRS prefers e-filing, and actually requires it when a company files more than 250 1099 forms. We take care of e-filing forms with the IRS and Stripe is covering this cost for marketplace customers.
Verification of tax information and successful filing with IRS. We’ll let you know that the e-filing process has been completed and successful for each contractor.
This partnership also comes with the announcement of Payable’s inclusion into General Catalyst Partners’ Stripe Fund as we take on additional investment from the firm.
We’re incredibly excited to join forces with Stripe to strengthen the 1099 economy by making the complicated 1099 tax process a lot simpler for some of the largest platforms and the contractors that earn money through them!
If you’d have any questions or need any additional information about the service, please reach out to us: email@example.com