Is Branch a Payment Settlement Entity (PSE)?

No, Branch is not considered a Payment Settlement Entity for IRS purposes.

• Branch acts as a technology provider that facilitates payments on behalf of our customers.
• The customer is the PSE, as they are arranging payments for services between parties and are ultimately responsible for tax reporting.

For tax filing purposes, Branch provides tools to support our customers but does not directly manage their tax obligations as a PSE.

Issuing 1099-K Forms

Does Branch Issue 1099-K Forms to Workers?
Yes, Branch does issue 1099-K forms to workers.

• It is the customer’s responsibility to determine whether their workers qualify for 1099-NEC or 1099-K forms, based on their interpretation of IRS guidelines.
• For example, one gig marketplace customer’s legal team classified their workers under 1099-K rules and filed accordingly.

Does Branch Provide a W-9 Form to Customers?

Branch now has the capability to collect W-9 information from your workers and verify that information with the IRS through our partner, Zenwork. However, this requires a specific contract addendum so it is not necessarily enabled for your organization. If that feature is not enabled, Branch is not required to complete and provide a W-9 form to customers.

• Branch does not act as an independent contractor for the customer. Instead, it is a technology provider enabling payment execution and tax reporting.
• If there is confusion about Branch’s role, please consult your legal or tax advisor for clarification.

Important to Note: 

Branch’s role is to provide tools and technology to simplify the tax reporting process for our customers. However, the ultimate responsibility for IRS compliance, form selection, and interpretation of tax rules lies with the customer.

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.