How does Reimbi handle W-9, 1099 and other tax-related documents?

Audience: Company, Requesters

Reimbursements

Reimbi does not collect a W-9 or W-8BEN for reimbursements, and it does not issue a 1099 for them.

A reimbursement pays a requester back for actual expenses they submitted on an approved expense report. These are generally not considered taxable income. IRS Publication 525 says that when a prospective employer pays or reimburses a job candidate for interview travel expenses, the amount usually isn’t taxable. Only the amount that goes over the candidate’s actual expenses counts as income.

Many companies treat reimbursements for other requesters, such as conference speakers and board members, the same way. The right treatment depends on your company’s situation, so check with your tax or finance team if you’re unsure.

Direct payouts

A direct payout is a payment without an expense report. Examples include referral bonuses, honoraria, and stipends. Direct payouts are generally taxable income for the person who receives them.

When a requester claims a direct payout, Reimbi may collect their tax information:

• US requesters: Form W-9
• Non-US requesters: Form W-8BEN

The company authorizing the payout decides how it’s taxed and issues any required 1099. Reimbi may pass the tax information it collects to the company so the company can meet its own reporting requirements.

For requesters

• Will I get a 1099 from Reimbi? No. If you got a direct payout, the company that paid you may send you a 1099.
• I have a question about how my payment is taxed. Please contact the company that paid you. Reimbi can’t give tax advice.

This article is general information, not tax advice. Please talk to a qualified tax professional about your situation.