What is Form 1099-K?
Form 1099-K is a tax document that summarizes your account’s payment activity to support tax compliance. Its primary purpose is to report payments you got for goods and services.
The IRS and certain states require Payload to issue a 1099-K to report specific sent or received payments. This form should be used alongside other financial records, such as bank statements or invoices, to ensure accurate reporting of taxable income, if applicable.
Payload is required to issue a 1099-K to individuals or entities who receive payments for goods and services through Payload that exceed federal or state reporting thresholds:
- $5,000 total gross payment volume in 2024, more than $2,500 in 2025, and more than $600 in calendar year 2026 and thereafter.
For payments made prior to calendar year 2024, the federal threshold was $20,000 in gross payment volume and 200 transactions.
State requirements may differ from federal thresholds, so it’s important to review specific state filing rules. We recommend consulting a tax advisor to determine your individual reporting obligations.
Who gets a 1099-K Form?
Businesses and individuals that collect payments through Payload by credit, debit, stored value card, or gift cardACH, check, or RTP, for selling goods or providing services.
1099-K and Escrow Payments
Escrow payments typically involve holding funds on behalf of parties involved in a real estate transaction (e.g., buyer and seller). These payments are often considered custodial transactions, not income to the escrow company itself.
If the escrow company holds funds in trust for real estate transactions and does not recognize them as income, those payments should not require a 1099-K for tax reporting purposes.
Payload may still issue a 1099-K for gross payment volume, including ACH payments. The escrow company must exclude non-revenue amounts from taxable income when filing taxes.
When will my 1099-K be available?
1099-K’s will be issued by January 31st of each year.
How will I receive my 1099-K form?
Payload will email you an electronic copy of your 1099-K. If you need a physical copy, please email us at contact@payload.com.
What tax details are included on a 1099-K form?
For U.S.-registered companies, Payload uses the business's tax information. However, if the account is a Single Member LLC or Sole Proprietorship, the owner's personal tax details are required, as the IRS classifies these entities as disregarded for income tax purposes. Similarly, personal tax details are used for individual accounts. For further details, please visit the IRS website.
Information on my 1099-K Tax Form
| Label | Box number | Description |
| Filer’s name, address, and telephone number | N/A | Payload's contact information |
| Payee’s name, and address | N/A | Your organization's contact information provided to Payload during account creation. If your information needs to be updated and Your 1099-K tax form has not been generated yet, please do so before December 31st from your Payload Account Settings, or by contacting Payload Support. |
| PSE’S name and telephone number | N/A | (Blank) |
| Account number | N/A | Your Payload account number |
| Filer’s federal identification number | N/A | Payload’s tax identification number. |
| Payee’s taxpayer identification number | N/A | Either your Employer Identification Number (EIN), Social Security Number (SSN), or Individual Taxpayer Identification Number (ITIN) as it was provided to Payload. For your protection, the form that we send you might show only the last four digits. Copies that are sent to the IRS and state tax boards include your complete identification number. If your information needs to be updated and Your 1099-K tax form hasn’t been generated, please contact Payload Support. |
| Gross amount of payment card/third party network transactions | 1a | The total gross volume of charges that you’ve made with Payload in the calendar year |
| Card Not Present transactions | 1b | The total gross volume of charges that were made using a card but without the card present at the time of the transaction. |
| Merchant category code | 2 | The merchant category code for your business or organization |
| Number of payment transactions | 3 | The number of charges that you’ve made with Payload in the calendar year |
| Federal income tax withheld | 4 | Backup withholding from your Payload payments. |
| January - December | 5a-5l | The total gross volume of charges that you’ve made with Payload for each month of the calendar year. |
| State | 6 | The state in which your income tax has been withheld |
| State identification number | 7 | Your identification number that is used for your state income tax withholding |
| State income tax withheld | 8 | State and local income tax withheld from the payments |