Running a business means keeping track of a lot of things, and taxes are definitely one of them! If your business accepts credit, debit, or other electronic payments, you might receive a tax form called Form 1099-K. Don't worry, it's not as complicated as it sounds, and Helcim is here to help you understand it.
This article will break down what Form 1099-K is, why it's important for your business, and how you can easily access it in your Helcim account.
In this article
What is Form 1099-K?
Form 1099-K is an informational tax form. Think of it like an annual summary of all the sales your business processed through payment cards (credit and debit) and other electronic payment methods, such as bank payments, during the past calendar year.
As your payment processor, Helcim is responsible for creating this form for your records.
We also file it on your behalf with the IRS (and relevant state governments if your business meets certain activity levels).
It's essentially a heads-up to the tax authorities about the gross amount of payments your business received through card transactions.
| Just like you might get a W-2 form from an employer summarizing your wages, a 1099-K summarizes your payment processing activity if you meet certain thresholds. It helps the IRS know how much money you’ve received through electronic payments. |
Why is Form 1099-K important for your business?
Even though Form 1099-K is an "informational" form, it's a very important one! Here's why:
For your taxes: The information on your 1099-K helps you (or your accountant) accurately report your business's gross income when filing your annual tax returns. It's a key piece of the puzzle for the IRS to understand your total sales activity.
IRS reporting: Helcim is required to send this form to the IRS if your business meets specific thresholds. This means the IRS will have a record of your payment card transactions, so it’s crucial that your records align with the information on this form.
Record keeping: It provides a clear, official summary of your payment card sales, which is great for your own financial records and helps ensure everything is consistent.
What are the filing thresholds?
For the 2024 tax year, Helcim will issue a Form 1099-K if your business had $5,000 or more in gross sales from combined credit, debit, or bank payment transactions within the calendar year. If your total gross sales from these types of payments are less than this amount, Helcim will not generate a Form 1099-K for your business.
How to view and download your Form 1099-K
Your Form 1099-K will be available in your Helcim account by January 31st each year. We'll also notify you by email when it's ready!
Here’s how to access it.
Log in to your Helcim Account.
From the dashboard, click on All Tools.
Next, click on My Business.
Then, select Tax Forms.
You'll now see all of your available Form 1099-K documents. If your business has multiple merchant accounts linked, you will receive a separate Form 1099-K for each one.
To view a form, click on View Form.
To save a copy, click on Download.
| Only users with "Administrator" or "Accountant" roles on your Helcim account will be able to view and download these tax forms. If you need access, please reach out to your account administrator. |
Understanding your Form 1099-K status
When you look at your tax forms in the Helcim platform, you'll see a "Status" for each 1099-K. Here's what those statuses mean.
Status | Definition |
Submitted | Your Form 1099-K was automatically submitted to the IRS by Helcim. |
Pending | Your Form 1099-K is ready and will be automatically submitted by Helcim, but the submission has not yet been completed. |
Canceled | This status means a previous Form 1099-K had incorrect information and was later corrected. A new, updated form (with a status of Not Submitted, Pending, or Submitted) should always follow a Canceled form. |
Not Submitted | Your Form 1099-K did not meet the minimum filing threshold and has not been automatically filed. |
Next steps
Have more questions about your Form 1099-K? Our in-house support team would be happy to help.
FAQs
Is Form 1099-K for Canadian businesses?
Form 1099-K is a tax form for businesses operating in the United States and is required by the IRS.
If your business is located in Canada and you exclusively operate within Canada, this form likely does not apply to you. Helcim only generates Form 1099-K for businesses that meet the US filing requirements.
What if I see a mistake or discrepancy on my Form 1099-K?
If you notice any issues, like incorrect business name, tax identification number (TIN), or transaction amounts, please contact us right away.
For name or TIN discrepancies, email 1099k@helcim.com with the details and, if possible, include your W-9 form.
For issues with reported processing volumes, which are based on the batch closed date, please reach out to our support team.
What if my Helcim account is closed? Can I still get my 1099-K?
Yes, even if your account is closed, you will still be able to access your Form 1099-K through your Helcim Dashboard. You can log in using your previous credentials. If you have any trouble logging in, please reach out to our support team.
Can I get a paper copy of my Form 1099-K?
By default, we provide Form 1099-K electronically. However, you can request a paper copy or withdraw your consent to receive electronic forms by writing to us. Please send your request to the following address.
| Helcim Inc. Attn: Tax Department Re: Request for 1099-K Paper Form Suite 400 - 440 2nd Avenue SW, Calgary, Alberta, Canada T2P 5E9 |
To help us verify your identity, please include your full name, phone number, business name, Helcim Merchant ID, and Tax ID Number, along with a statement about your request.