More to be added as we get this data. For now, we are making the FAQ's as they come and will be creating tutorial videos as well. Make sure to see the "How It Works" tab to see a general explantion video.
Affiliate (receiver) Questions
Vendors looking to pay their affiliates can use this STEP by STEP Process Map to help them with the process.
There are THREE reasons why you need to track w9 and 1099 data for the US Residents you pay.
No. 1 - You put your U.S. based affiliates at a major risk with the IRS by not providing them with the proper forms they need to present to the IRS. Your failure to do so may leave them to leave income you sent them unclaimed. When they are later faced with an audit by the IRS, they can face back-taxes, fines, interest, and penalties and potential legal problems. You are doing a disservice to your U.S. based affiliates by not sending them the proper year end tax records they need to keep proper records with the IRS. As the industry continues to get regulated, affiliates will not work with vendors that do not provide them with proper records. To ensure you never lose an affiliate for poor record keeping, make sure to use our service.
No. 2 - Depending on your country and international commerce laws, you may be required to provide this information to U.S. based affiliates you paid especially for sales made to U.S. customers by U.S. affiliates.
No. 3 - In your country, you are required to track money sent to others. This allows you to deduct it from the amount you pay taxes on. If you fail to keep proper records (such that we provide you at no cost to you) then you will have no way to prove who you sent money too. Your countries investigators and auditors may think you are laundering money if you can not prove who you sent it to. So having a completed Tax Profile on EVERY U.S. / International person you sent money to will help keep you out of hot water.
The best way to answer this is as follows.
The same question can be made to the bird of prey. "If I keep my head in the sand, won't I get noticed by the hunter right next to me when I lift my head out?" - The law states you must keep proper records. You already know that. Hiding is not the answer. In fact, in many cases it is your worst nightmare. They find out eventually. They always do. And before a nationwide crackdown hits. You want to be prepared. It is better to know your situation and deal with it than to live in fear. The longer you go doing things the wrong way, the more the penalties and interest will be.
Remember, ignorance has no excuse in the law. However, "Negligence" can be considered criminal. And if you KNOW you are to pay taxes and keep proper records but you fail to do so, the IRS may not just come out you with civil just but also criminal.
This is a great feature to use when you already paid someone a commission on a sale that was later refunded or charged back. Since you already paid there person, there is not much you can do unless you call them and ask them to send the money back. That is not an easy thing to do.
So with the "Future Clawback" option, you can now rest assured that is that person earns future money, you can have the system deduct any amount you enter today from that future commission.
So if you enter 250.00 today and next week (or next month or next year) you upload a pay file with 300.00 in it. It will only pay the person 50.00, or if you upload a pay file with 100.00 in it, it will not pay the person anything and will hold is clawback account to -150.00 to be deducted from future payments.