US tax forms

Tax forms completed by payees using Tipalti's online wizard do not require your approval. The information the payee enters on the tax form is cross-checked with the type of tax form. For example, if the payee completes a W-8BEN or W-8BEN-E form, the system checks that the payee's permanent resident address, mailing address, country and phone number are non-US.

Although you don't need to approve electronic forms, if Tipalti has asked the payee to provide additional documents, you need to approve those documents for the payee to become payable.

Some tax forms need to be downloaded, completed manually and uploaded back to the iFrame or Supplier Hub. You are required to review and approve these forms. Manual tax forms can be accessed from the Tipalti Hub via the Documents tab or the Payees > Documents subtab (see Find payee documentation).

Required user roles View Payees & Update Payee

If you collect tax forms manually from your payees, you can mark payee accounts as "Tax form submitted manually" so that Tipalti does not prevent them from being paid. In this case, the 1099 Preparation report will include only partial information (i.e., payments will be mapped correctly, but all tax identifying information will be blank).

1. Search for the payee.
2. At the top right of the screen, click "Actions" and go to Tax form > Tax form submitted manually.
3. In the dialog, click "Ok" for the payee's tax form status to change to "Submitted manually".

Marking a payee's tax form as received manually makes any tax forms previously submitted by the payee through the Supplier Hub/ iFrame no longer available. If you performed this action in error, please submit a ticket to our Support team. Payees will still be able to submit a new tax form at a later date.

Required user roles View Payees & Update Payee & Update Payee Payment Details (displays the "Log in as payee" menu item)

If you are manually collecting signed W-9 forms from payees, you can input their tax form information in the Supplier Hub on their behalf instead of marking payee accounts as "Tax forms submitted manually". Therefore, their tax information will display in Tipalti and will be included in 1099 Preparation reports.

This option is available for W-9 forms only. You cannot submit information on behalf of a payee for any other tax form type.

If the payee is:

• Not registered in the Supplier Hub, you can log into the Supplier Hub as the payee and manage the account on the payee's behalf
• Already registered in the Supplier Hub (i.e., the payee, not the payer, is managing the payee account), the option to "Log in as payee" is unavailable unless you have the Payee Payment Details Administrator role

Follow these steps to submit the payee's signed W-9 tax form to Tipalti.

1. Search for the payee.
2. At the top right of the screen, click "Actions" and select "Log in as payee", which automatically logs you into the Supplier Hub in a new window. You may now manage the payee account.
3. On the Payment Details tab, go to the 3rd page, Tax Forms.

4. Click the "here" link to begin entering the payee's W-9 tax form information that was submitted manually to you.

   
5. If TIN (Taxpayer Identification Number) validation is enabled for the payer, we will attempt to validate the payee's TIN:
   • If the payee's TIN fails validation, the payee's status becomes "Submitted (failed TIN validation)". An email is sent to the payer indicating that the payee is not payable and additional verification is required or the payer should mark the payee as "tax form submitted manually".
6. Payee W-9 tax information can be found on the payee's record in the Tipalti Hub:
   • On the Payees tab, users can click the "More" button in the TAX INFO row to view the dialog below. The "Submitted by" field indicates the tax form was submitted manually by the payer.
     
7. The following locations in Tipalti also show who submitted the tax form:
   • Downloadable CSV report - Payee list report
   • Payee APIs - GetExtendedPayeeDetails and GetExtendedPayeeDetailsList
   • payee_details_changed IPN

The payee needs to complete the W-9 form if the payee entityAn entity can be a subsidiary, division, business unit, brand, etc. of your organization. Entities can have similar or different AP processes and workflows. is incorporated in the US or the payee is an individual and one of the following applies:

• You are a US citizen.
• You are a resident of the US.
• You have dual citizenship with one citizenship being US.
• You are subject to taxation as a US citizen.
• You were born in the US and have not formally renounced US citizenship.

The W-9 form can be completed by the payee via Tipalti's Supplier Hub and in the iFrame.

According to IRS regulations, W-9 forms are not required for payees earning less than $600 annually. Tipalti allows you to configure your account so that payees under this threshold are not required to submit a W-9 form via the iFrame or Supplier Hub. For more details, please get in touch with your Tipalti support representative.

The payee needs to complete the W-8BEN form form if the payee is an individual who is not:

• A US citizen
• A resident of the US
• Subject to taxation as a US citizen
• US born

And who:

• Has no income effectively connected with the conduct of trade or business within the US
• Is not acting as Intermediary
• Is not receiving a compensation for personal services performed in the US for which you are claiming a treaty benefit

Tipalti can also identify if a payee may have selected the wrong tax form for US citizens and guides them to the correct form.

The W-8BEN form can be completed by the payee via Tipalti's online wizard. Instructions on how to complete the form are also provided.

P.O. box or in-care-of (c/o) addresses are not accepted on this tax form.

Non-US entities that have US-sourced income are required to complete a W-8BEN-E form. This form can be completed by the payee via Tipalti's online wizard. Instructions on how to complete the form are also provided.

If the payee enters a P.O. box or in-care-of (c/o) address on this tax form, the payee will be required to provide evidence of the registered address and an explanation to confirm it is the only address for the entity (see Additional Documents).

The payee needs to complete the W-8ECI form if the payee is an individual and the payee's income is effectively connected with the conduct of trade or business within the US (click here for W-8ECI withholding rates). The W-8ECI form and instructions on how to complete the form are provided to the payee. This form must be downloaded, completed manually and uploaded back to the iFrame or Supplier Hub.

The payee needs to complete a W-8IMY form if the payee entity is a foreign partnership, a foreign simple trust or a foreign grantor trust (and not claiming treaty benefits) or the payee is an individual acting as Intermediary. The W-8IMY form and instructions on how to complete the form are provided to the payee. This form must be downloaded, completed manually and uploaded back to the iFrame or Supplier Hub.

The payee needs to complete the W-8EXP form if the payee is representing a foreign government, an international organization, a foreign central bank of issue, a foreign tax-exempt organization, a foreign private foundation or government of a US possession claiming the applicability of sections 115(2), 501(c), 892, 895 or 1443(b); and, the following applies:

• The payee is not an individual.
• The payee is not an entity incorporated in the US.
• The payee is not an entity that is a foreign partnership, a foreign simple trust or a foreign grantor trust (and not claiming treaty benefits).
• The income of the payee entity is not effectively connected with the conduct of trade or business within the US.

The W-8EXP form and instructions on how to complete the form are provided to the payee. This form must be downloaded, completed manually and uploaded back to the iFrame or Supplier Hub.