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How should I handle taxes for ambassador commissions?
How should I handle taxes for ambassador commissions?
FAQs about taxes and ambassador payouts
Shelby Baldwin avatar
Written by Shelby Baldwin
Updated over a week ago

What am I and my ambassadors responsible for, tax-wise?

Tax obligations depend on many factors like the geographic laws and regulations for your area, what kind of entity your ambassador(s) are, how much your ambassadors earn per year, and other factors. Because each merchant is different and has different tax obligations, there is no one uniform answer to this question. Buzzbassador is not authorized to provide official legal or financial advice, and we do recommend that each merchant consults their own legal and tax professionals to ensure that in line with all applicable regulations.

Does Buzzbassador generate tax forms for my ambassadors' commissions?

Within Buzzbassador, we do not generate any 1099s, W-9s, or any other tax forms. This is because our platform does not actually participate in the flow of your payout funds -- meaning our app never "touches" or handles any of your commission payments directly. We only calculate them before they are paid, and help track them after they are paid.

Because we aren't the ones directly sending out funds on your behalf, we cannot provide tax forms for the funds. This typically is handled instead by a company accountant, and occasionally forms can be attained from the platform that actually does pay your funds out, such as PayPal (if you are using our PayPal Payouts integration).

Can I use Buzzbassador to collect W-9s or other tax forms from my ambassadors?

Because Buzzbassador does not handle any tax-related activities, there is not currently a built-in feature for collecting W-9s or other tax forms. If you need to include a process for accepting W9 forms in your Buzzbassador onboarding process, there is a workaround for this. Simply include instructions for ambassadors to upload a W-9 or other tax form in the Application Accepted email you send out, and include a link in the email to a DropBox or Google Drive folder where the ambassadors can upload the documents. Keep in mind that in the future, we will be launching a file exchange feature within Buzzbassador that will make this a lot easier!


As always, if you have any questions, don't hesitate to email us at [email protected], or send us an instant chat from the bottom right corner of your app window.

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