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?
The threshold is set to $599 in the US and $499 in Canada.
💡 The threshold is set on an annual basis and resets every January 1st.
What happens if a user exceeds the threshold?
We recommend that users submit their tax form once they reach 85% of the threshold. Any entries approved after surpassing the threshold will not 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 to submit the form as soon as possible.
Does the user need to submit a tax form each year?
Once a user submits a tax form for a brand, they won’t need to submit 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, if they exceed the threshold for two brands, they will need to submit a tax form for each one.
Is the threshold based on one brand or all earnings on ENDVR?
The threshold is set individually for each brand, not based on overall earnings on the platform. This means each brand has its own threshold that must be met before a tax form submission is required.
Example:
You are earning from four different brands: Brand A, Brand B, Brand C, and Brand D, each with a threshold of $599.
Brand A: Your earnings total $500. Since you haven’t reached the threshold, no tax form is required.
Brand B: Your earnings have reached $620, surpassing the threshold. You must submit the tax form for Brand B. Earnings will stop at $599 for this brand, and anything over that won’t be shared with you. To avoid delays, submit the form when you reach 90% of the threshold.
Brand C: Your earnings total $580, so no tax form is required yet. However, it’s recommended to submit the form early to avoid delays. Sending it before reaching the threshold is advisable due to potential processing delays.
In this example, you only need to submit the tax form for Brand B, as it’s the only brand where you’ve surpassed the threshold.
Are users notified before they reach the threshold?
Yes, users will receive an email notification when their earnings reach 85% of the required threshold. This will alert them that a tax form is needed and provide instructions on how to submit it.
They should submit the form as soon as they receive the notification to ensure they continue receiving payouts for entries beyond the threshold.
Please note that the email will be sent to the address used to create the account. If the user no longer has access to this email, they must contact support to update it.
What happens if the user reaches the threshold?
Once a user reaches 100% of the threshold, they won’t receive cash earnings until the required tax form is submitted and acknowledged. Therefore, it’s essential to submit the form as soon as they receive the notification at 85% to ensure they continue receiving payouts for entries beyond the threshold.
For example, if a user reaches the threshold and three entries are approved before the tax form is acknowledged, they won’t receive cash rewards for those entries. However, once the form is acknowledged, any subsequent entries will be paid out.
No Timeframe for Submission
There is no specific deadline for submitting the tax form. However, once a user reaches 100% of the 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 rewards will be withheld.
Tax Form is Not Mandatory to Share
Users are not obligated to submit their tax form. However, if they choose not to submit the form, they will not be able to earn additional cash once the 100% threshold is reached.
That said, they will still be eligible to receive other types of rewards, such as codes or non-cash grand prizes, if available in the campaign.
Question? Feel free to reach out to our amazing support team via the In-App chat or email at support@endvr.io