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 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.