Since Grubhub receives funds from customers and transmits these funds to your restaurant, the IRS considers Grubhub a Third Party Settlement Organization (TPSO). As stated by the IRS, “Every PSE or other party which submits instructions to transfer funds to the account of a participating merchant, in settlement of reportable payment transactions, must file an information return (Form 1099-K) with respect to each participating payee for that calendar year.”
The IRS requires that a Third Party Settlement Organization (TPSO) provide a 1099-K to a payee if, for the calendar year:
See Box 1a. Gross Payment Card/Third Party Network Transactions for more details. 1099-K forms are aggregated and sent by taxpayer ID, for each taxpayer ID that meets the requirements outlined by the IRS.
For multiple restaurant locations that use the same taxpayer ID:
For multiple restaurant locations using different taxpayer IDs:
Per IRS law, all 1099-Ks are sent via postal mail to the address on file for your restaurant(s) by January 31 every year to all taxpayer IDs that qualify. For the security of your account, we are unable to post the forms online; however, we can email the forms upon request..
If you have not received your 1099 at your restaurant by February 15 via postal mail, feel free to contact our 1099 team at 888-831-5729 or [email protected] to obtain a password protected electronic copy.
Any order where the customer’s funds are settled into the bank of a 3rd party (i.e. Grubhub) and later transferred to the bank account of another taxpayer (i.e. payee/restaurant). This includes payments made by credit card, PayPal, gift card, and corporate line of credit. It is reflected as “prepaid orders” on your Grubhub statements. Click here for more details.
As stated by the IRS “Gross amount means the total dollar amount of total reportable payment transactions for each participating payee without regard to any adjustments for credits, cash equivalents, discount amounts, fees, refunded amounts, or any other amounts” (See Box 1a. Gross Payment Card/Third Party Network Transactions).
For a clear example of this presented by the IRS, please see IRS Regulation 1.6050W-1 (e) Example 5. Gross Amount (bottom right of page 423, and continued at top left of page 424).
In October or November of each year, the IRS sends Grubhub a CP2100 notice stating that certain 1099-Ks provided for the prior year had taxpayer name and number combinations that did not match their records.
We are required to send the listed taxpayers B-Notice letters to obtain a W-9 and immediately start withholding 24% of all funds due. This withholding occurs until we receive the updated W-9. The withholding is paid to the IRS each month and is then reflected in Box 4 of the 1099-K.
Before starting this withholding, we send several notifications via direct mail, fax, email, and phone.
Please email [email protected], and provide specific details as to the numbers you are seeing on your statements vs the numbers reported on your 1099-K. We will research the issue, and if an error does exist, we will provide a revised form. Otherwise, we will let you know why there is a difference between the numbers you are finding and our 1099-K calculation.
If you do not have a login for these sites or you are having difficulty with retrieving your statements, please reach out the following for assistance:
Grubhub for Restaurants & Seamless Corporate/Catering – 877-799-0790
Grubhub for Work – 877-564-4191
If the tax information on your 1099-K is incorrect, please send an updated W-9 form to firstname.lastname@example.org. We will review the W-9 and update your 1099-K.
Once the revised form is available, we will send you a secure, password-protected email with a PDF of your 1099-K.
In order to correct your 1099-K, we will need the following information sent to [email protected]:
We will review the W-9 form, the evidence and date of the change, and the 1099-K that was sent.
In order to receive a 1099-K, the taxpayer ID will need to reach $20,000 in gross reportable transactions for the partial year. If either taxpayer ID had less than $20,000 in gross reportable transactions during their respective partial year, then an updated 1099-K will not be generated for that taxpayer.
Once the revised form is available if either or both taxpayer IDs qualify, we will send a secure password protected email with a PDF of your 1099-K.
Normal updates to the tax ID number, not associated with a 1099, has to be done by your Account Advisor. Please see the Profile section on Grubhub for Restaurants for their contact information or call Restaurant Care at 877-799-0790 for assistance.
The IRS requires that we mail 1099-Ks to payees by January 31.
Since we file with the IRS electronically, the IRS does not require the forms to be filed until March 31. Any changes made before we file with the IRS are simply edits/revisions to the form.
Any changes made after we file on March 31 will require that we provide you with a “Corrected” form and file this “Corrected” form with the IRS.
If you have not received a copy in the mail or misplaced it, please email [email protected] or call 888-831-5729, and we will be happy to send you a secure password protected email with a PDF of your 1099-K. The email will come directly from our service provider, Tax1099.com.
Please check your spam or junk folder if you do not receive an email within three (3) business days of your request.
When the 1099-K is emailed, the form is password protected for your security. The instructions will be included in the email, but the password is typically as follows:
This should be entered all lower case, and with no spaces. For example, if your Corporate Entity name is “My Restaurant” and the last 4 of the taxpayer ID is 1234, the password would be entered as “myre1234.”
If you have entered the correct password and the form will not open, please contact the 1099 team at 888-831-5729 or email [email protected].
All emails are answered in the order that they are received. Please be aware that response times may be delayed during tax season (January-April) due to the volume of emails and calls received on a daily basis. During those peak months we expect to respond within three (3) business days. Resubmitting your request will only add to the backlog.