The full tax stack is here
Isn’t tax management complicated? It’s time-consuming, it’s expensive, and if you outsource it, you end up having to deal with multiple vendors. Alternatively, you can leave it all to Payoneer.
One vendor for all your tax management needs
Payoneer is the only provider to offer you the complete stack of tax services on top of a world-class compliance platform and a global payments solution.
The way we roll
We know how demanding tax management can be. It comes with all sorts of challenges, including:
So many forms, so many people
Distributing forms, collecting, checking, double-checking them. Ensuring the IRS has the correctly completed 1099 and 1042 forms…the task never ends.
Simplify the task
Tax involves internal tax management teams, external tax specialists, and lawyers. Minimizing the need for multiple vendors simplifies things and helps you save time and money.
Multiple vendors
When you have individual vendors for separate tasks, such as W form collection, reporting, TIN matching and 1099/1042 filing, life gets unnecessarily complicated.
Better payee experiences
Make it easy for your payees to submit forms, get paid correctly and on time, and they’ll be much more likely to stay loyal to your marketplace in the long term.
Compliance duties
Failure to comply with IRS regulations can result in audits and IRS-levied fines, and legislation is always changing. Staying on top of it all is demanding.
Frequently asked questions
A W8 form is issued by the United States’ Internal Revenue Service (IRS). It is completed by non-US residents and non-US corporations who have received a source of US-based income. The form certifies an individual’s overseas status. By completing a W8 form, a payee avoids or reduces the tax withholding applied to their US based income.
A W9 form gathers identifying information, such as the name, address, and Taxpayer Identification Number, for payments made by US businesses to US residents. A W9 form is completed by a payee. A completed W9 can help a payee to avoid backup withholding taxes. Without a completed W9, a payer may be forced to collect withholding taxes.
A 1042 form is filed to the IRS to report the tax withheld on certain US-based incomes of foreign nationals.
A 1042-S form is also issued by and submitted to the IRS. If you pay a US source of income to foreign payees, you must submit a completed 1042 and 1042-S form for every overseas payee you have paid. Each 1042-S form details the amount of US income you have paid to a particular foreign national. Typical payments reported on a 1042-S include royalties, dividends, real estate income, pension income, scholarships, gambling winnings, interest, grants, prize money, and insurance premiums.
A 1099-K form is similar to a 1099 form. It is to record specific payment types totaling more than $600 made to a US resident in any given tax year. The key difference between 1099-K, 1099 and 1099MISC is that 1099K is designed to cover payment card transactions or a third-party network transaction:
“Payment card transaction” means any transaction in which a payment card—or any account number or other identifying data associated with a payment card—is accepted as payment.
“Third-party network transaction” means any transaction settled through a third-party payment network—but only after the total exceeds the above thresholds.
Our tax services solution is one of the most comprehensive on the market. By including 1042 forms, we have provided a significant advantage to US-based businesses that are regularly paying digital royalties to non-US-based creators. Our solution removes the burden, time, and cost of manual form filling. It also provides accurate withholding calculations for every payee. And it enables you to help your payees to be compliant with IRS regulations throughout the financial year.
Your payees will receive emails prompting them to complete the relevant form for their needs. Each of those emails is automated and can be branded with your company logo and colors.
Yes. You can see which payees have completed, started, or not yet started their submission process.
Yes. All completed W-, 1042 and 1099 forms are stored securely, so you will always be able to respond quickly in the event of an IRS audit.
We can explain how to technically fill out a W- form using our tax services solution, but we cannot advise on the specifics of what information to enter (this would fall under ‘tax advice’). Instead, you should seek advice from a certified tax professional or the IRS.
A tax wizard questionnaire offers guidance for payees to choose and complete relevant forms. However, we do not and cannot offer specific advice about what information to include in any form. Please seek professional advice where necessary.
When you sign up with Payoneer’s tax services solution, you provide the contact details of your payees. From there:
1. Your payee receives an email asking them to complete the relevant W- form.
2. Their submitted information is collected by Payoneer, stored securely, and then passed on to a third party that makes a precise withholding calculation for each payee.
3. All withholding payments per payee are then aggregated and automatically fed into a 1042 or 1099 form, which you can review before submitting it to the IRS.