What am I and my members responsible for tax-wise?
Tax obligations depend on many factors like the geographic laws and regulations for your area, what kind of entity your members(s) are, how much your members 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 members' commissions?
Buzzbassador does 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, or if one is not available, 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) or Tremendous.
For example, with Tremendous, they have an easy W-9 collection system. Read more about how to use that here.
Can I use Buzzbassador to collect W-9s or other tax forms from my members?
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 members 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 members can upload the documents.
In the future, we will be launching a file exchange feature within Buzzbassador that will make collecting W-9s and other files from members a lot easier! :)