Skip to main content
Tax form collection is controlled by the organization sending the payment (the payer). Recipients need to submit tax forms when that payer’s collection setting requires them. Tax forms are not mandatory for every payment.

​
How to manage tax collection settings

Payers manage tax form collection for each recipient under Collect tax forms. Choose when Karat collects forms, or turn collection off: You can choose a setting when adding a new recipient. To change an existing recipient’s setting, open Payments > Recipients, select the recipient, and click Edit. Choose a setting under Collect tax forms and save your changes. See Managing recipients in Payments for details on editing existing recipients. To turn off tax form collection, select Do not collect (Skip in the send-payment form). The recipient can then complete onboarding without submitting a W-9 or W-8 for that payer. The payer chooses this setting; recipients cannot change a payer’s tax form requirement themselves. If you’re a recipient with a question about the requirement, contact the organization paying you.
Turning off tax form collection does not turn off recipient verification. Recipients still need to provide the information needed for onboarding, pass applicable verification and sanctions checks, and select a payout method.

​
What’s required when tax forms are collected

U.S. recipients: W-9 form and Taxpayer Identification Number (TIN) International recipients: W-8 form and country-specific tax details

​
How it works

When prompted to complete a tax form, you’ll enter your information and electronically sign it. Karat then verifies your details, which may include identity checks, sanctions screening, and TIN matching for U.S. users. When tax forms are required, payments may be delayed if your tax information is incomplete or incorrect. Tax forms are updated automatically if your information changes. Recipient tax information onboarding

​
Receiving payments from multiple payers

If you’ve been invited to receive payments from more than one organization, each payer that requires tax information collects it separately. Submitting your tax form for one payer doesn’t automatically share it with another. When you accept a new payment invitation, you may be prompted to complete your tax form again for that payer, even if you’ve already finished the process before. Your previously approved details are reused where possible, so you typically only need to review and re-sign.