Compliance Corner

1099s for Reps Earning $600

PlanNet Marketing U.S. Reps are required to provide their Social Security Number, Federal Employer Identification Number, or their Government Issued ID Number for tax purposes. Every year, PlanNet Marketing will provide an IRS Form 1099-NEC (Non­ Employee Compensation) earnings statement to each U.S. resident earning $600 or more, as required by the Internal Revenue Service. Each Rep is responsible for paying local, state and federal taxes on any income generated as an Independent Representative (IR).

Reps who don’t live in the U.S. are required to submit a Form W-8 BEN, which is basically a notice of tax waiver – this form declares that the Rep is not liable to pay any taxes to the United States Government/IRS. Non-U.S. Reps are responsible for reporting their earnings as necessary and paying any applicable taxes in their own country and/or region. Any U.S. Rep who does not provide a valid Social Security number is subject to the federal backup withholding laws and 28% of their commissions and bonus will be withheld and submitted to the IRS. 

PlanNet Marketing pays all commissions via Hyperwallet's Paylution Pay Portal. If you earned more than $600 annually for the first time, Paylution will automatically prompt you to verify your taxpayer classification and number before they release your commissions (over $600). Simply login to your Paylution account to see if you need to verify your Taxpayer information today. If necessary, the request to verify will be prominently displayed on the screen in your Paylution back office.


 

If you haven’t provided your tax information, or if you don’t know if you have, call our Support Team at 470-443-9330. You can also email 1099@plannetmarketing.com for more assistance.

-- Policies and Procedures Section 5.6 and 5.7, located in your Virtual Office in the Information Center (go to Resources, then Policies and Procedures).

~Amanda Restivo, Vice President, Compliance -- arestivo@plannetmarketing.com

 

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