As a payment processor Balanced is responsible for reporting 1099K formsto the IRS and the payee under certain conditions. Most businesses areresponsible for reporting nonemployee compensation through the 1099miscform. Here are the requirements for reporting 1099misc What is nonemployee compensation If the following four conditions are metyou must generally report a payment as nonemployee compensation. You made the payment to someone who is not your employee You made the payment for services in the course of your trade orbusiness including government agencies and nonprofit organizations You made the payment to an individual partnership estate or in somecases a corporation and You made payments to the payee of at least 600 during the year. Instructions for Form 1099MISC 2022. Here are the requirements for reporting 1099K Beginning in January 2022 payment settlement entities PSEs are requiredby the Housing Assistance Tax Act of 2022 to report on Form 1099K thefollowing transactions All payments made in settlement of payment card transactions e.g. credit card Payments in settlement of third party network transactions IF Gross payments to a participating payee exceed 2022. AND There are more than 200 transactions with the participating payee. New 1099K Reporting Requirements for Payment Settlement Entities