Hey guys I was thinking of maybe starting an Affiliate program and needed some help. Well, I was wondering, for you guys that run your own Affiliate programs, when you guys pay your Affiliates, how does this work as far as the Legal aspects and Taxes etc? I'm in California, USA and as far as i know, i think that when u pay someone i think u are supposed to report the social security # of anyone you pay. (they sell your product and you pay them a commission) I think they are known as an independent contractor that you pay. But not sure how this really works. I have never ran an Affiliate program and would like to know how it's done. Q2. To you guys that pay others (your affiliates), *Do u just pay your affiliates/members and that't it? Or do You or "Are you" supposed to collect their social and other data. How is this done? Please explain In need of some Your expert help because i asked around but i'd like to get the advice of someone who actually runs an affiliate program and pays his Affiliates. Thanks for the help guys I really appreciate the help frenzy
just pay your affiliates and send the proper tax filings out after the year is over. you do need to report the payouts and have valid tax-id info.
my understanding is that, if your business is out of the US, you would have to send 1099s to the affiliates that you had paid out over $600 to. that may be *some* help, good luck 1099s