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  1. #1
    Newbie
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    January 18th, 2005
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    Just coming into the the affiliate world. Got some software on my server and getting ready to get some affiliates signed up. My issue is I'm still trying to figure out my legal responsibilites. Im in Florida, US. It seems so far that when an affiliate makes more than $600, I have to issue tham an IRS 1099 form. Then I see some affiliate programs that won't pay you unless you fill out a W-9 Federal Tax form. I'm just trying to figure out the basics of what I'm reponsible for and what my affiliates are responsible for. Any help greatly appreciated.

  2. #2
    Affiliate Miester my2cents's Avatar
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    January 18th, 2005
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    it sounds like you need a good accountant and attorney....


    JOe
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    that's my2cents, 'cuz I'm a legend in my own mind....

  3. #3
    ABW Ambassador
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    Exactly what my2cents wrote.

    You cannot get that kind of help in a forum. You really need professional advice from people that you can talk to face to face. Have a dialog with someone who is being paid to advise you

  4. #4
    ABW Ambassador
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    January 18th, 2005
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    As a merchant, if you pay an affiliate $600 or more, you need to report that to the IRS. You'll only need to to have the affiliate fill out a W-9 and issue them a 1099 if you are paying them directly. If you're using a company such as SAS, CJ, LS, etc who pays them for you, that company will usually handly the W-9's and 1099s.

  5. #5
    Newbie
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    January 18th, 2005
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    Thanks for the helpful info -
    I pay my affilaties directly, so does anybody know if the affiliate can fill out the W-9 online through the IRS. I'm just trying to make signing up and getting paid easy for the affiliate. Of course, I'll double check with my accountant, but I thought someone may have some seasoned advice. Any help greatly appreciated.

  6. #6
    ABW Ambassador Sam Bay's Avatar
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    I'd recommend not to make W-9 a part of affiliate sign up process. Once an afiliate signs up, and generates commissions, direct them W-9 .pdf file at IRS website, and ask them fax or mail to you in order to receive payments. That way it'll be less files to process for you, and easier sign up for affiliates.

  7. #7
    I like traffic lights
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    Plus the fact that overseas affiliate with no presence in the USA do not need to fill out a W9, so if you try and make them during the siggn-up process, they'll go elsewhere. I know I do.

  8. #8
    Newbie
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    January 18th, 2005
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    That makes a lot of sense - thanks

  9. #9
    Member
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    January 18th, 2005
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    Interesting stuff,

    I assume you are only talking about American merchants, our company is based in Canada. What do I tell our American affiliates about their tax responsibilities? Some of our affiliates aren't professional marketers (some are just our customers that want to earn some extra dough by telling their family and friends about our products)

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