Important 1099 Update
Posted: Wednesday, February 01, 2017 12:11:23 PM
Hello Designers and Associates,

Tax season is upon us – so with everyone preparing to file their taxes, we wanted to update you on an important change with your 1099s.

In our efforts to fully comply with IRS tax guidelines and forms, Zazzle will NOT issue Form 1099-MISC’s for designers who were paid via PayPal. We know you may have a lot of questions regarding this update, so please read our Q&A below.

Q: Why isn’t Zazzle issuing Form 1099-MISC to Designers or Associates paid via PayPal?
A: Per the IRS website, “Payments made with a credit card or payment card and certain other types of payments, including third-party network transactions, must be reported on Form 1099-K by the payment settlement entity under section 6050W and are not subject to reporting on Form 1099-MISC.”

PayPal is the type of entity that would issue a Form 1099-K, while Zazzle would issue a form 1099-MISC.

Q: I'm opted to be paid with check. Will I still get Form 1099-MISC from Zazzle?
A: Yes, those who opted to be paid by check will continue to receive their Form 1099-MISC's from us.

Q: I was getting paid by check earlier in the year, and then switched over to PayPal later (or vice versa). Where would my Form 1099 come from?
A: You will receive a Form 1099-MISC from us from the months you were getting paid through check.

Q: What are the terms for getting a Form 1099-K From PayPal?
A: You can read what’s required on their end here.

Q: Does this also include international designers/associates who need a 1042?
A: No, this only applies for US-based designers. We will continue to send out Form 1042 as usual.

If you have any further questions, please read the IRS site here or contact our customer support team here.

Thank you,

Zazzle Team

Posted: Thursday, February 23, 2017 3:34:21 PM
Dear Designers,

In an effort to alleviate concerns some of you have had, we’ve made some changes on who will receive 1099-MISC forms.

After confirming with PayPal there is no risk of duplicate reporting, we have decided to issue 1099-MISC to cover all 2016 royalty payments, regardless of payment method. If you did not change your payment method during calendar year 2016 and have already received a 1099-MISC from us, you will not receive a replacement 1099-MISC. These new/replacement 1099-MISC will be sent out as soon as possible, but no later than the deadline of 3/31/17.

Thank you again for all you do here at Zazzle.

Best regards,

Z Team
Posted: Wednesday, April 05, 2017 8:36:11 AM
Hello Designers,

We understand that there are some concerns with the amount shown on your 1099-MISC forms. Per our last update, we decided to issue 1099-MISC forms to cover all 2016 royalty payments, regardless of the payment method. Therefore, those who were paid via check have 1099-MISC forms that report both referrals and royalties. Those who were paid via PayPal have 1099-MISC forms that report just royalties. Referrals paid via PayPal fall under PayPal’s 1099-K reporting obligation, not Zazzle’s.

We met the January 2017 deadline for people who have referrals (box 7), who were getting paid via check. The deadline for March 31st was for everyone else, which we have correctly filed in accordance with the IRS’s due date of March 31st.

We are not able to provide any tax advice so we recommend consulting with a tax professional.

Thank you.
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