Filing taxes

Updated

Headway is required to collect W-9 forms from all providers on our platform. This form provides the legal name, address, and taxpayer identification number (TIN) (either Social Security Number (SSN) or Employer Identification Number (EIN)) of each contracted provider.

Headway will then use the information received in the W-9 forms to populate the taxpayer identification needed to complete 1099 forms, which will be distributed to all contracted providers that were paid $600 or more during the year. 

Note: W-9 requests and 1099 filing will be coming from New York Medical Behavioral Health Services, P.C. as this is the legal entity that providers are paid from.

 

Filing taxes with a Single-Member LLC (SMLLC)

If you own a Single Member LLC that is disregarded you must enter your SSN (see IRS Form W-9 Part 1 instructions for further information).

Single-Member LLC (SMLLC) is by default a “disregarded entity” for tax purposes. Essentially, this means that the IRS does not distinguish between the business entity and the individual owner for taxation.

Because of this, the Form W-9 must be completed using the name and Tax ID of the individual owner. As a note, your 1099 may show your social security number (SSN); this is not a mistake and you do not need to fix it or reach out to Headway

If you're a sole proprietor and you have an EIN, you may enter either your SSN or EIN when prompted for your SSN.

For any additional questions on this, we recommend that you speak to a tax consultant. 

W-9 collection

Before the end of the year, we'll collect all W-9s through Stripe, the third-party payment processor we use to manage your payouts. 

For individual providers 

To fill out and electronically sign your W-9

  1. Log into Sigmund, where you'll be prompted to fill out and electronically sign your W-9 form
  2. In the pop-up, click Complete on Stripe
  3. Complete the W-9 in the Stripe page

Note: If you are a single-member LLC (SMLLC), the IRS requires you to fill out your W-9 with your SSN. This does not affect the type of bank account you’re able to use for the bank set up stage.


Not ready to fill out and electronically sign your W-9 yet?

You can dismiss the reminder by clicking Remind me later and come back to complete the process at a later time.

We'll add a reminder to your Home page in the provider portal that you can return to at any time. Additionally, we'll remind you of the upcoming deadline every 24 hours when you log in. 

A note on delays 

You'll have 2 weeks to complete the W-9. If it is not completed by the deadline, you won’t be able to confirm sessions until it has been completed and electronically signed. As soon as you complete the steps outlined above, you'll be able to confirm sessions again. 

 

For group practice owners/administrators

We'll need groups to re-enter their information in Stripe, as well as complete the W-9. Additionally, group administrators/owners will need to re-enter the group bank account information. 

Note: All actions will be taken by the group practice admin or owner. No action is required from non-admin providers in your group. 

To complete this process

  1. Log into Sigmund, where you'll be prompted to update your group's billing information
  2. In the pop-up, click Update billing info to visit your billing page 
  3. On the billing page, click Verify as group practice to re-verify your group practice in Stripe 
  4. Once the group has been re-verified in Stripe
    1. Return to the billing page in Sigmund 
    2. Click Update group practice bank account
    3. Follow the prompts to enter your group's bank account information


Not ready to complete the W-9 process yet?

You can dismiss the reminder by clicking Remind me later and come back to complete it at a later time.

We'll add a reminder to your billing page in the provider portal that you can return to at any time. Additionally, we'll remind you of the upcoming deadline every 24 hours when you log in. 

A note on delaying re-verification 

If this process is not completed by the deadline, your group practice will not be able to confirm sessions until it has been completed. As soon as you complete the steps outlined above, you and your group will be able to confirm sessions again. 

 

For group practice providers (non-admin/non-owner)

No action is required! Your group practice administrator will take care of W-9 collection and re-verification for the entire group.  

 

1099s

Headway will send out 1099s to all eligible providers regardless of entity type because they are informational forms only. While corporations are not required to be issued 1099s, they are allowed to receive them.

Please note: 

  • 1099s are sent in early February to the email connected to your Headway account, directly from Tax1099.
  • If you opted out of electronic delivery, a physical copy will be sent to the address on file. 
  • 1099s will show a sender of New York Medical Behavioral Health Services, not Headway – this is not a mistake. 
  • Mailed 1099s will take about 14 business days to arrive and are being sent by USPS. Note that there may be additional delays due to the mailing system.
     

Accessing 1099s

Headway utilizes Tax1099 to file the appropriate tax forms to the IRS (most commonly Form 1099-NEC). Tax1099 is an IRS authorized e-filing and compliance platform.

Please be sure to check your spam and junk folders if you do not see an email from them. 

The form is locked by password to protect your privacy, and to open the form, please note:

  • Your password is 8 characters long
    • Enter the first 4 letters of the name listed after the word "Dear..." in your email from Tax1099 all lower case, then enter the last 4 digits of your tax ID (this is either your EIN or SSN)
    • All special characters are excluded from the password
      • Example: John Smith, TIN 123456789, the password is john6789

If you received a blank 1099NEC, this is likely due to your privacy settings. Please try to download the file once more, and if you are having the same issue, reach out to our team.

 

Password troubleshooting for Tax1099

As a reminder: your password is the FIRST 4 letters of the name listed after the word "Dear..." in your email from Tax1099 all lower case THEN the LAST 4 digits of your Tax ID (either your SSN or EIN). 

If you're having trouble, please see below for some tips and examples. 

Tips 

  • Your TIN is based on the W9 you completed in Stripe (or Tax1099 last year if you did not complete the Stripe W9).
  • If your name, or the first word of the name of your business, is less than 4 characters, you'll need to include spaces in the password. 
    • Example: "The Therapy Spot" would include 1 space after "the" in the password.
    • Example: "Joe" would include 1 space after "joe" in the password.

Examples

  • Example 1
    • The email you received says "Dear KATIE" and your Tax ID, which is your SSN, is 234567891
    • Your password: kati7891
  • Example 2 
      • The email you received says "Dear Fox Hill Therapy" and your Tax ID, which is your EIN, is 987651234
    • Your password: fox 1234 (remember to include the space!) 
  • Example 3 
    • The email you received says "Dear CA Therapy" and your Tax ID, which is your EIN, is 987654321
    • Your password: ca t4321 (remember to include the space!)
  • Example 4
    • The email you received says "Dear JoeSmith" and your Tax ID, which is your SSN, is 123403215
    • Your password: joes3215
  • Example 5 
    • The email you recieved says "Dear A+ Therapy" and your Tax ID, which is your EIN, is 123123122
    • Your password: a  t3122 (remember to include the space for special character, and the space!) 

 

Frequently Asked Questions 

What is included in Tax Information?

Tax information includes: Name of Business, Address, & Employer Identification Number (EIN)/Social Security Number (SSN). This information should be provided via IRS Form W-9 to Headway.

What if I provided the wrong tax information to Headway?
If your tax information changes for any reason please provide a new and updated W-9 to Headway as soon as possible and before the end of the calendar year with the effective date of the change. The tax information Headway has on file for the provider should match exactly to the tax information on the bank account receiving payments from Headway. Examples of reasons to change: (1) Business has moved addresses, (2) I provided my individual tax information when in fact I run my practice through a business entity (SMLCC, S-Corp, C-Corp, etc.), (3) I legally changed the name of my business.
Do I also need to file a W-9 with the IRS?
No, a W-9 is only provided to the payer requesting it (i.e., Headway) and is not filed with the IRS.
What is the timeline of receiving a 1099?

You can expect to receive a 1099 to the email address associated with your Headway account in early February 2024.

If you have opted out of electronic delivery via the December 2023 communications from Headway, a physical copy will be sent to the address on file.

What is the dollar threshold in order to receive a 1099?

If Headway has paid your practice at least $600 (excluding the welcome/referral bonuses) in 2023, then you will be receiving a 1099-NEC. Kindly note, the $600 minimum does not include sessions that may have occurred in 2023 but are scheduled for payout in 2024.

If I have an issue with my 1099, how do I contact Headway?

Please reach out via our contact form and include your practices' full name.

What is the difference between a 1099-K and 1099-NEC?

1099-Ks are issued by an online payment processor automatically if you receive $600 or more via an individual online payment processor (ex., Paypal). Headway will only file a 1099-NEC for payments that did not go through a payment processor that issues 1099-K. This might include cash, check, or direct deposit. If you believe you have erroneously received both a 1099-K and 1099-NEC for the same income, please reach out via headway.co/contact.

What if I never received a 1099 from Headway, but I believe I should have?

Please reach out via our contact form and include your practices' full name.

What happens if I don't provide taxpayer information?

U.S. tax rules require Headway to obtain taxpayer information from every provider on our platform. If you do not provide us with taxpayer information, then Headway may pause your calendar abilities and prohibit further sessions until the W-9 is received.

How should I register with a Single-Member LLC (SMLLC)?

Single-Member LLC (SMLLC) is by default a “disregarded entity” for tax purposes. Essentially, this means that the IRS does not distinguish between the business entity and the individual owner for taxation. Because of this, the Form W-9 must be completed using the name and Tax ID of the individual owner.

SMLLCs may only use their business name and EIN on a tax form if they filed a Form 8832 with the IRS to be treated as a corporation or partnership.

Disclaimer

Headway cannot provide tax advice. We recommend connecting with a tax consultant for any tax related questions. 

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