Tax time is fast approaching again and many affiliates have been asked to complete W-9 and W-8BEN forms for their merchant partners.
A few affiliates have expressed concern about what these forms mean, so here is the Ros' Notes version.
If your merchant partner asks you to submit a W9 or W8 form , do so.
In many cases, the merchant will not legally be able to continue paying your commissions without having a completed form.
The forms are quick to fill out and require only the most basic information.
Basic information about the W9 and W8-BEN forms is included below.
W-9 Forms
If you are a U.S. person, including U.S. citizens and resident aliens, you must fill out a W-9.
Your merchant partner needs this form along with your identification number (TIN), or social security number, to report income paid to you to the IRS.
With a completed W9, and if you report all your taxable interest and dividends on your tax return, payments you receive from merchant partners will not be subject to backup withholding (currently at a rate of 29%).
W-8BEN Forms
Foreign person, non-resident alien or foreign national performing working outside the U.S must fill out a W-8BEN.
Foreign persons are not subject to U.S. income tax withholding if performing the work outside the U.S.
If you receive certain types of income, including prize money won in affiliate program contests, you must provide a Form W-8BEN to establish that you are not a U.S. person, and claim that you are the beneficial owner of the income for which Form W-8BEN is being provided.
Forms and further information is available at:
Note: This is not official legal or accounting advice. For more information, please contact either your affiliate program manager or your accountant.
Happy accounting!