To ensure compliance with tax regulations, we have implemented a system that tracks users ENDVR earnings in relation to tax form submission. Below are important details to help guide you through the process and also steps on how to submit your form!
FAQ
What is the Threshold amount ?
Threshold is set to $599 in the US and to $499 in Canada
💡 The threshold is set on an annual basis and resets every January 1st.
What happens if a user goes over the threshold?
We recommend the user to submit heir form once they reach 85% of the threshold. Any entries approved after surpassing the threshold won’t qualify for a cash reward, even if the W9 is submitted afterward. To ensure they receive payouts for entries beyond the threshold, it's crucial that they submit the form as soon as possible.
Does the user need to submit a Tax Form each year?
Once they submit a tax form for a brand, they won't need to provide a new one in subsequent years for the same brand, as the information is saved for future use
Does the user need to submit multiple tax forms?
A tax form is required for each brand where they reach the threshold. So, they exceed the threshold for two brands, they will need to submit a tax form for each one.
Is the threshold for one brand or all the earning on Endvr?
The threshold is set to a specific amount for each brand individually, not based on the overall earnings on the platform. This means that each brand have its own threshold that you must meet before requiring a tax form submission.
Example
You are earning from Three different brands: Brand A, Brand B, Brand C, and Brand D. Each brand has a threshold of $599 for tax form submission. Here's how it works:
Brand A: Your earnings total $500. Since you have not reached the $599 threshold, no tax form is required for Brand A at this time.
Brand B: Your earnings have reached $620, surpassing the $599 threshold. You must submit the tax form for Brand B. Earnings will stop at or above $599 for this specific brand only, and anything over that won't be shared with you. To avoid delays, submit the form when you reach 90% of the threshold, especially if completing a mission.
Brand C: Your earnings total $580, so no tax form is required for Brand D yet. However, it's strongly recommended to submit the form early to avoid delays and ensure you continue receiving rewards. Sending it before reaching the $599 threshold is advisable due to potential processing delays.
In this example, you only need to complete and submit the tax form for Brand B, as it is the only brand where you have surpassed the $599 threshold.
Are the users notified before they reached the Threshold?
When a user earnings reach 85% of the required tax reporting threshold, they will receive an email notification. This is to alert them that a tax form is required. This email will include the information on how to submit the Form.
They should submit your form as soon as they receive the communication, at 85% to ensure they receive payouts for entries beyond the threshold.
Click here for more information on the 1st Notification
Please note that the email is being sent to the address used to create the account. If they don't have access to the email, they would need to contact support to update it.
What happens if I reached the Threshold?
Once they reach 100% of the threshold, they won’t receive cash earnings until the required tax form is submitted and acknowledged. Therefore, it’s important that they submit the form as soon as they receive the notification at 85% to ensure they receive payouts for entries beyond the threshold.
For example, if a user reached the threshold and three entries are approved before the tax form is acknowledged, they won’t receive any cash rewards for those entries. However, once the form is acknowledged, any subsequent entries, like the 4th and 5th, will be paid out.
Click here for more information on the Earnings Halt
No Timeframe for Submission
There is no specific deadline for submitting the tax form. However, once they reach 100% threshold, their ability to earn cash rewards will be paused until the form is acknowledged. They can still submit entries and receive non-cash rewards during this time, but cash reward will be withheld.
Tax Form is Not Mandatory to Share
Users are not obligated to share their tax form if they choose not to. However, if they do not submit the form, they will not be able to earn additional money once the 100% threshold is reached.
That being said, they will be eligible to receive other types of rewards, if they are available in the campaign (Codes, Non-cash Grand prize), etc)
Question? Feel free to reach out to our amazing support team via the In-App chat or email at support@endvr.io