Is Branch a Payment Settlement Entity (PSE)?
No—Branch is not considered a Payment Settlement Entity (PSE) for IRS purposes. It acts as a technology provider that facilitates payments on behalf of its customers. The customer is the PSE, since they arrange payments for services between parties and are ultimately responsible for tax reporting.
For tax filing purposes, Branch provides tools to support customers but doesn't directly manage their tax obligations as a PSE.
Supported Form Types
Branch can facilitate filing of either 1099-NEC or 1099-K forms. It's the customer's responsibility to determine which form type their workers qualify for, based on their interpretation of IRS guidelines; form type is set at the organization level and shared with Branch during setup.
Does Branch Provide a W-9 Form to Customers?
Branch collects W-9 information from your workers and verifies it with the IRS through partner Zenwork. It doesn't provide an official, completed W-9 form to organizations or users, but can provide individual forms as needed.
Branch doesn't act as an independent contractor for the customer. Instead, it's a technology provider that enables payment execution and tax reporting.
If you have questions about Branch's role, consult your legal or tax advisor for clarification.
Important to Note:
Branch's role is to provide tools and technology that simplify tax reporting for customers. The customer holds ultimate responsibility for IRS compliance, form selection, and interpretation of tax rules.
Related Articles:
- How do I file a 1099-NEC/K form?
- Getting Started with 1099-NEC/K Filing
- How do I enroll in 1099-NEC/K filing services?
Branch is not a bank. Banking services are provided by Lead Bank, Member FDIC and Evolve Bank & Trust, Member FDIC, which are Branch’s bank partners. The name of the bank partner for your account is listed on the back of your debit card and can also be found in the Branch App under “Your Account Information”. FDIC insurance only applies to eligible accounts should the bank holding your funds fail. Branch Mastercard Debit Cards are issued by Evolve Bank & Trust or Lead Bank, Member FDIC, as applicable, pursuant to a license from Mastercard and may be used everywhere Mastercard debit cards are accepted.