PayPal / Venmo Payouts Overview

RefTown integrates with PayPal's Payouts service to offer a fast and inexpensive option for paying officials to either PayPal accounts or Venmo accounts.

 This service uses 95% of the same functionality as our other financial services that have been available for a long time. The calculations of how much to pay, who to pay it to, and the documentation of what the payment is for have been around since the mid 2000's (with several enhancements along the way). New is the system used to transfer the money.

Requirements:

  1. You will need a PayPal business account
  2. You will need to apply to PayPal to allow “Payouts” (we have setup instructions).
  3. You enter into RefTown, an account access code to the PayPal account to connect our system with theirs.
  1. You transfer your funds into your PayPal account ahead of time. You allow for 3-4 business days for the money to transfer (EFT/ACH like above) or you can wire it same day for a fee from your bank.
  2. After the game(s), generate invoices to calculate how much is to be paid.
  3. Direct RefTown to send instructions to PayPal to transfer money to the officials' accounts.
    • The money is then instantly transferred form your PayPal account to the official’s PayPal/Venmo account.

Benefits:

Payments made with a credit card or payment card and certain other types of payments, including third-party network transactions, must be reported on Form 1099-K by the payment settlement entity under section 6050W and are not subject to reporting on Form 1099-NEC. See the separate Instructions for Form 1099-K.

Other Notes:



Article ID: 261
Last updated: 12 Aug, 2021
Revision: 5
Administrator's Guide -> Finances -> PayPal / Venmo Payouts -> PayPal / Venmo Payouts Overview
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