Payoneer Releases Automated Tax Form Service
Payoneer, a cross-border payments technology company, has released an automated tax form service to its mass payout offering.
Payoneer clients can now automatically collect beneficiary information via an online wizard that supports all relevant W-8 and W-9 forms; create 1099 & 1042 forms for IRS submission with full SSN and EIN validation; and automatically hold payments until the form is completed by the beneficiary. For businesses such as ecommerce and freelance marketplaces, ad networks and vacation rental platforms already disbursing money to their beneficiaries through the Payoneer platform, this Tax Form Service provides an end-to-end mass payout solution.
“Payoneer has previously provided a tax form service on a one-off basis for a couple of clients, but this is first time we’re bringing it to the full ecosystem in automated way,” company CFO Michael Levine told Accounting Today. “Not only do small- or mid-size businesses have payment burdens to contractors or freelancers, but now when they reach a threshold of $600 paid to a payee, they have 1099 or 1042 filing requirements with IRS when paying contractors. This is a huge burden on companies.”
Payoneer’s platform only withholds payments when a beneficiary reaches the $600 IRS threshold. The goal of the company’s tax form service is to enable companies to more easily onboard small suppliers, especially in emerging markets, by ensuring they’re not overlooked due to the cost of traditional tax form administration.
“The whole goal is to provide an automated solution that’s flexible so we create as little challenge as possible,” Levine added.