How should we treat affiliate payments for tax purposes?
We have small but growing affiliate program and now make regular payouts to our affiliates. How should we withhold some tax from the payouts and remit to the government or let the affilaites pay taxes themselves.
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Open Apr 01, 2022 - 05:17 PM
Affiliate Marketing
1answer
Answer
Apr 01, 2022 - 05:50 PM
It depends on what country you are in. In the US, the common way to handle this is to issue 1099 forms (just like you would for an independent contractor) and then let the affiliates handle their own taxes. An easy way to piss off an affiliate is to dock their payments. In Europe or Asia and the rest of the world, the rules may be different.
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