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1099-K form
1099-K form
Discover the role of the 1099-K Form in tax reporting for businesses using Adyen's payment processing, and learn how this Form assists in your financial management.
Getting started
The 1099-K Form is a summary of your account's sales activities, intended to help with tax reporting. It doesn't cover personal income, which must be reported separately. This Form is issued to the account holder and the IRS, as well as certain US states.
Find more information about the 1099-K Form.
1099-K Form eligibility
In the majority of states, you qualify to receive the 1099-K Form if, during the previous calendar year, you met the following criteria:
- Generated over USD 5,000 in card payment processing volume.
- Processed more than 200 card payments using Fresha's card processing solution.
- The 1099-K threshold is based on the total gross payment amount processed through Fresha, without factoring in fees, credits, refunds, shipping, cash equivalents, or discounts.
- The gross payment threshold required to receive a 1099-K Form varies by state. Access the latest information on the eligibility criteria you need to meet.
Preparing for the 1099-K Form
If your account meets the above criteria, meaning you are eligible to receive a 1099-K form, make sure the billing details in your Fresha account are correct and your tax number is valid. This is important for the form to reflect the correct details and to guarantee it is mailed to the correct address.
Receiving and locating the form
Fresha's payment service provider, Adyen, will submit the 1099-K Form to the IRS by March 31st, on your behalf. Additionally, a physical copy of the Form will be mailed to you around February 1st, and an electronic copy will be sent to your email for your records.
You will also be able to download the 1099-K Form electronically from your Fresha account by February 1st, following these simple steps:
- Open Workspace settings and select Billing then 1099-K.
- All account holders linked to your workspace will be able to download an electronic version of their 1099-K Form.
- Locate the relevant year and click the Download icon.
- Once downloaded, you can also print it.
To correct or update any information on your 1099-K Form, open your business wallet, select Bank accounts, then Edit and proceed to Edit account holder details. Follow all of the steps through to add the updated information. Once submitted, you'll need to wait for your details to be approved before the changes will be reflected.
FAQs
The 1099-K Form is designed to assist in tax reporting. It summarizes your account's sales activity but does not include personal income.
You are eligible if your account made over $5,000 USD in card payments and processed more than 200 card payments in the previous year using Fresha's card processing solution. The threshold may be different in certain states so we recommend checking the IRS's website to see if you meet to criteria to receive the 1099-K form.
If the information on your 1099-K is incorrect, you can easily update the account holder details by heading to your Wallet, selecting Bank accounts and then clicking on Edit next to the relevant entity to make the relevant changes. In case you wish to update your bank account details, while in the Wallet page, click on the three dots next to the relevant bank account. Any updates should be completed before January of every year for the form to reflect the correct details and to guarantee it is mailed to the correct address.
The 1099-K form will be sent to the address entered when you created your entity so make sure this is up to date at all times. You can update the information by heading to Wallet, selecting Bank accounts and then clicking on Edit next to the relevant entity to update the account holder details.
If you need access to your 1099-K Form after your account has been deleted, please reach out to us, providing full details of your request. We'll assist you further with retrieving the 1099-K Form.
If your Fresha account is eligible to receive a 1099-K form, make sure the billing details in your Fresha account are correct and your tax number is valid every January. This is important for the form to reflect the correct details and to guarantee it is mailed to the correct address.
If you do not meet the criteria to receive a 1099-K form, you can use the Sales log detail report which will provide you with a detailed breakdown of each sale you've raised within your Fresha account.
If you use a third-party payment processor, they are responsible for providing your 1099-K Form. Fresha's card processor, Adyen, will not be responsible for issuing you a 1099-K Form.
No, personal income is not included in the 1099-K Form and should be reported separately.
The 1099-K form is issued based on the entity's sales over the past year, regardless of the current owner. The amount reported is for the entity itself, not dependent on who owns the account.
The amount reported on your 1099-K form is associated with the entity used for the location during the period of the report. Therefore. if you change entity halfway through the year it will switch and start reporting the amount from the new entity.
The 1099-K form for the previous year(s), should already be available in your Fresha account and can be accessed by opening Workspace settings and selecting Billing then 1099-K.