Tax witholdings.

Discussion in 'Payments' started by sdsvtdriver, May 17, 2006.

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  1. #1
    Greetings experts!

    I currently have my Adsense payments on hold... on purpose (gasp!). :eek:

    Long story short, I'm deciding on whether to accept payments directly or to go through the formality of settings up an LLC/S-corp. There are obviously pros and cons to both (sole proprietor taxes vs. cost of settings up LLC, where to base LLC from, laywer's fees, etc). However, that discussion is for another forum.

    Since I have never received payment or a 1099 from Google, I have a few questions. This is for US based publishers.

    1. I am told Google withholds ~30% for taxes. Is this correct? Does this only apply to sole proprietors?

    2. What taxes does this withholding include? Self employment? FICA?

    I want to have the best understanding prior to talking to my account again and before I hunt down a lawyer.

    Thanks
     
    sdsvtdriver, May 17, 2006 IP
  2. NewToAllThis

    NewToAllThis Peon

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    #2
    Google will hold 30% if you specify that when you fill out your tax information. Otherwise Google does not withhold taxes.
     
    NewToAllThis, May 19, 2006 IP
  3. advanet

    advanet Peon

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    If you are US based publisher you are required to submit Internal Revenue Service (IRS) form W-9.
     
    advanet, May 20, 2006 IP