Introduction
Purpose: This article explains how SocialLadder Payouts work, covering pre-funding, payout processing, and tax compliance.
Context: SocialLadder offers a streamlined solution to compensate ambassadors for their work while handling tax filing requirements. This fully integrated system ensures that payouts are processed efficiently, allowing brands to focus on engagement rather than manual payments.
🚨 Note: Fees apply. Contact your Account Manager for current pricing details.
Pre-Funding the Payouts Account
All funds for payouts must be transferred to SocialLadder at least 2 weeks before the scheduled payout date.
Work with your Account Manager to estimate the necessary pre-funding amount.
SocialLadder offers flexible payment methods for pre-funding:
Credit Card (3% fee applies)
ACH Transfer
Invoice-Based Transfers
🚨 Important: SocialLadder must have sufficient pre-funded balance before processing payments. If the total payout exceeds the available balance, the batch will not be processed. You must either:
Reduce the batch size.
Transfer additional funds.
Paying Your Ambassadors
Ambassadors earn compensation by completing tasks and generating sales in SocialLadder. Their earnings can be tracked on:
Creator Dashboard – Ambassadors can view their earnings in real-time.
Admin Portal – Brands can monitor payouts and manage transactions.
💡 Best Practice: Maintain a structured payout schedule to ensure smooth operations and ambassador satisfaction.
How Ambassadors Receive Their Payouts
Once a Payout Batch is processed:
Ambassadors receive an SMS notification with a secure link to access their payment.
They can choose their preferred withdrawal method, including direct deposit or other country-specific options.
Users can automate their payment preferences for future withdrawals.
📌 Note: Payout methods vary by country. Click here to check available options for each location.
Creator Payout Options
Tax Compliance & W9 Collection
SocialLadder automatically collects tax information from ambassadors when their earnings exceed $600.
W9 Collection:
Digital W9 forms are collected as soon as the ambassador crosses the $600 threshold.
Tax Compliance Terms:
Ambassadors must complete tax documentation to continue receiving payments.
Tax Document Distribution & IRS Filing:
SocialLadder handles 1099 distribution and IRS filing for eligible creators.
Fees apply for tax document processing—contact your Account Manager for current pricing.
Digital W9 Collection
Tax Compliance Terms
Best Practices & Tips
Pre-Fund Early: Avoid payout delays by transferring funds at least two weeks in advance.
Use Filters for Accuracy: When creating a Payout Batch, filter by segment, date, or reward type to ensure correct payments.
Verify Ambassador Details: Encourage ambassadors to update their payout information to prevent processing issues.
Stay Compliant: Ensure that ambassadors submit W9 forms promptly to avoid tax-related delays.
Related Articles