How does the calculation of 1099k work in relation to total sales and payouts?

How does the calculation of 1099k work in relation to total sales and payouts?

JupiterOak
Visitor
1 0 0

Is the 1099k calculated by payouts or total sales? Also, I started using the mergify app to combine orders and for most of the year I didn't notice that it was adding the new combined order to the sales total. Of course, I wasn't receiving that money because it had already been paid on the individual orders. Is that affecting my 1099k total?

Reply 1 (1)

PageFly-Kate
Shopify Partner
1201 346 361

Hi @JupiterOak 

This is Kate from PageFly - Landing page builder, I’d like to suggest this idea:

The 1099-K form reports the total dollar amount of payment card transactions processed by a payment settlement entity (PSE) for a payee. It's calculated based on total sales, not payouts.

If the sales reported on your 1099-K form include the combined orders generated by the Mergify app, even if you didn't receive the money for those transactions, it would still affect the total reported on your 1099-K form.

Hope my answer will help you

Please let me know if it works by giving it a Like or marking it as a solution!


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