Best practices for requesting and accepting payments on Pepperlane
We're excited to offer Pepperlane members the ability to easily request and accept payments on Pepperlane through our integration with Stripe, one of the largest secure payment processing platforms in the US.
Enabling payments with Pepperlane and Stripe makes it simple to accept credit and debit cards as payment from your customers, keep an accurate record of the payments you've requested and received, and stay on top of your gross earnings for the purposes of annual tax reporting.
Before you start accepting payments from your customers, there are a few things you should know.
Connecting with Stripe
- When you're ready to set up payments, we'll walk you through the process of creating a Stripe account to connect to Pepperlane, right from your Pepperlane Dashboard
Sales Tax & Regulatory Requirements
- Make sure you understand whether your service is taxable, and include the tax in the amount you request from your customers.
Sales tax requirements vary from state to state. Here's a handy article and map to help you understand whether your service is subject to sales tax in your state.
- Discuss costs with your customers up front and provide an estimate if possible so that there will be no surprises when a payment request arrives.
- For larger projects, set up a payment schedule in advance so you can request payment at regular intervals or milestones.
- Include notes in each payment request about what is included in the charge, e.g. "$500 for Home Office Decluttering project".
Income Tax reporting
- At tax time, check your transaction history in Stripe so you can accurately report your gross earnings. If you process more than $20,000 of payments in one year, Stripe will automatically send you a 1099-K to help with income reporting.
- Make sure to account for income taxes in your pricing and set money aside to pay your taxes. Remember that if you are self-employed, you must set aside additional money for self-employment taxes, and you may be required to file quarterly estimated tax payments to avoid a penalty.
- Track your expenses so you can make appropriate tax deductions.
- Consult a tax professional for guidance about your personal situation.