If you or a client did not receive a Paypal 1099 K 2018, it is important to contact the company to receive a copy. Known as the Payment Card and Third-Party Network transactions form, the 1099 K is used often by Paypal, as well as credit card companies and other third-party processers, like Amazon. Only these providers distribute this type of form, which means most businesses won’t have to worry about it. Additionally, only those who make at least $20,000 or 200 transactions using the third-party provider will receive this form.
However, many accountants with small business clients will need to have a working understanding of the form. More than anything, if your client is missing a Paypal 1099 K from 2018, you should know what to do. We’ll help you figure it out.
What is a 1099 K?
The 1099 K may appear to be a rarely used, but it is extremely common amongst companies who work with monetary transactions. The form is primarily used to report payment transactions that are processed for retailers through a third-party service, like Paypal. The form is itself easy to navigate, as preparers must only include personal identification information and the amount in payment transactions for the calendar year.
If you received a Paypal 1099 K in 2018, you either received gross payments of over $20,000 during the calendar year, or you made more than 200 transactions. This is common for folks who offer a Paypal payment option on e-commerce tools and websites.
If you’re going over your business’s taxes – or doing so for an accounting client – you may notice that you are missing a Paypal 1099 K 2018. If this is the case, contact the company directly to receive a copy. You will have likely filed your tax and wage information correctly for 2018, but you should maintain a copy for your business records.
Stay Ready and Informed with Advanced Micro Solutions
While most businesses will not need to worry about filing and distributing a 1099 K, many small businesses will receive a copy of the form. Many of those businesses utilize accountants, either contracted or in house. Those accountants, as well as other tax and wage professionals, should understand how the 1099 K works, as well as how to handle a missing Paypal 1099 K 2018. AMS is up for the job.
Our software solutions are designed with small businesses in mind. In many cases, that includes independent accounting firms. This points up the importance of our user-friendly interface and menu-driven platform. Intuitive and modular, software tools from Advanced Micro Solution can assist in most tax- and wage-related tasks. Whether your client is dealing with a missing Paypal 1099 K 2018 form or navigating the switch from 1099-MISC to 1099-NEC, we have the tools you need to help.