Government taxation has become a big concern for many vendors who pay their affiliates online, and for good reason. Starting in 2011 PayPal will now be reporting revenue to the federal government. You do not want to be left with no means of 1099ing your affiliates, especially for PayPal users. Don't worry PayGear users are covered.
Not only do most vendors have no way of processing tax information, the few ways that do exist offer no real 1099 service beyond just keep track of the numbers. You are still required to know how to fill out 1096 and 1099 forms, if you have hundreds or even thousands of affiliates that could be a ridicules amount of work. That is hardly a 1099 service in our book!
Users of PayGear not only get payment tracking, but also a complete tax form service. We prepare all the 1096 and 1099 forms on your behalf. Using PayGear as your affiliate manager is like having your own built in accountant keeping track of all sales 24/7 and then doing all your tedious tax documents for you.
Vendor Tax Set-Up
Vendors will still have the obligation to pay their affiliates until an affiliate is going to receive a payment that puts them over $600 for the year. Once the $600 limit is reached the next payment will not be allowed through until the affiliate sets up his tax profile.
To set up the PayGear tax service on your account just access the "Account Details" page and the check the box under "Tax Services" as a vendor. There is a $1 onetime fee for this service and you must have a verified PayPal account. Verified PayPal accounts insure you really are who you say you are.
- Next click the save profile button at the bottom of the page.
- You will now be taken to the PayPal checkout, once your payment has been verified your tax feature will be enabled.
Affiliates Tax Profile
Affiliates will receive all affiliate payments without a tax profile, that is until that affiliate is going to receive a payment that puts them over $600 on the year. $600 is the legal limit in which you can pay someone without filling a 1099. If a payment puts an affiliate over $600 on the year and the vendor is using our tax service that affiliate payment will be put on hold until the affiliate creates their PayGear tax profile.
- To set up your affiliate tax profile as an affiliate access the "Account Details" pae and click the link "Set up tax profile".
- You will need to fill out the next page as seen below and sign with your mouse inside the dotted signature area. You can sign by holding down your left mouse button inside the signature area. Once you submit the forum your W9 will be created.
- Look over your W9 and select which type of business you are.
- Click save and your tax profile has been completed. You are now elegible to receive payments from all vendors.
Note: If you are a non US citizen living outside the US you will not be required to create a W9.