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Paypal payees no longer need to submit tax forms
Published on September 16, 2021 by Alanna Irving

Requiring expense payees to submit a tax form is sometimes a barrier to getting people paid quickly and easily. Filling out paperwork sucks, and forcing people to do unfamiliar online tasks sucks. We are working to remove such hurdles wherever possible.

The tax form requirement is triggered when someone gets paid $600 or more per year via invoice expenses (receipt reimbursements don't count toward the threshold). This is due to an IRS rule we have to follow.

We have recently learned that we don't need to get a tax form if the payment method is Paypal (because Paypal will automatically issue them a 1099 and we don't have to), so we have removed the requirement.

From now on, new payees who use Paypal will not be asked for a tax form.

If you have already submitted your tax form previously, or you don't use Paypal, this change will not affect you.
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