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Payoneer Expands Tax Suite with 1042 Forms for US businesses
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Payoneer (NASDAQ: PAYO) has expanded its tax services by introducing 1042 forms, aimed at simplifying tax obligations for marketplaces managing digital royalties for non-US residents. This move facilitates compliance for US-based platforms while enhancing Payoneer’s services in the growing digital royalties sector, which has an estimated 50 to 200 million international content creators. The new service automates tax entity collection, withholding calculations, and IRS filings, streamlining processes for digital content platforms.
Positive
Introduction of 1042 forms simplifies tax obligations for digital royalty payments.
Enhances Payoneer's service offerings in the fast-growing digital royalties space.
Automates tax processes, saving time and resources for US-based platforms.
Negative
None.
The new offering expands Payoneer’s suite of services for content platforms in the burgeoning digital royalties space
NEW YORK--(BUSINESS WIRE)--
Payoneer (NASDAQ: PAYO), the commerce technology company powering payments and growth for the new global economy, announced today the expansion of its tax services with the addition of 1042 forms. The new offering simplifies tax obligations for marketplaces and platforms paying digital royalties to non-US residents, and marks further inroads by Payoneer into the music and creative royalties space.
The growing digital economy has created new and unique business opportunities for international content creators. The content creator economy, one of the fast-growing digital commerce ecosystems, has been estimated to include between 50 and 200 million people.1
Many of the top content consumption platforms – from streaming music to social media – are based in the US and required by the IRS to report the royalties paid to their international creators. This makes Payoneer’s 1042 tax service essential for US-based digital content platforms hosting nonresident creators, helping them meet IRS withholding and reporting responsibilities while saving time and resources by:
- collecting tax entity information for creators using W forms;
- calculating withholding rates using tax entity information; and
- filing 1042 forms to the IRS on behalf of the platform.
“As a leader in the digital commerce industry, we work to lower barriers that stand in the way of customers’ growth potential,” said Ya Wen, SVP of Americas at Payoneer. “Our new 1042 tax offering minimizes pain points for platforms that pay digital royalties to an ever-expanding base of international content creators. It’s about taking the complexity out of tax withholding and reporting responsibilities with an automated and secure service that manages it for them end-to-end.”
In addition to tax solutions, Payoneer offers companies in the digital royalties space an extensive global banking and payments network that makes it easier and safer for them to pay creators and suppliers located in more than 190 countries and territories around the world.
About Payoneer Payoneer is the world's go-to partner for digital commerce, everywhere. From borderless payments to boundless growth, Payoneer promises any business, in any market, the technology, connections and confidence to participate and flourish in the new global economy.
Since 2005, Payoneer has been imagining and engineering a truly global ecosystem so the entire world can realize its potential. Powering growth for customers ranging from aspiring entrepreneurs in emerging markets to the world's leading digital brands like Airbnb, Amazon, Google, Upwork, and Walmart, Payoneer offers a universe of opportunities, open to you.
Forward-Looking Statements
This press release includes, and oral statements made from time to time by representatives of Payoneer, may be considered “forward-looking statements”. Forward-looking statements generally relate to future events or Payoneer’s future financial or operating performance. In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “expect,” “intend,” “will,” “estimate,” “anticipate,” “believe,” “predict,” “potential” or “continue,” or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Payoneer and its management, as the case may be, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to the occurrence of any of the risks and uncertainties set forth in the section entitled “Risk Factors” and “Cautionary Statement Regarding Forward-Looking Statements”, as well as any further risks and uncertainties contained, in Payoneer’s Annual Report on Form 10-K for the period ended December 31, 2021 and future reports that Payoneer may file with the SEC from time to time. Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Payoneer does not undertake any duty to update these forward-looking statements.
What is Payoneer's new offering related to 1042 forms?
Payoneer's new offering involves the introduction of 1042 forms to help simplify tax obligations for platforms that pay digital royalties to non-US residents.
How does Payoneer's 1042 form service benefit digital content platforms?
It automates tax entity collection, withholding calculations, and IRS filings, reducing the administrative burden for US-based platforms.
What is the significance of the digital royalties market?
The digital royalties market is rapidly growing, with an estimated 50 to 200 million international content creators, creating opportunities for platforms to engage with a wider audience.
How does Payoneer support the creator economy?
Payoneer provides essential tax and payment services that enable platforms to effectively manage royalties, thereby supporting the thriving creator economy.
