W-9 Cluster Fuck Underway - SPONSORS PLEASE NOTE
KinkyDollars.com is already fucking this up, so I wanted to make other Sponsors aware. Accounting in the hands of people that don't read instructions is a DANGEROUS THING, so please do your homework if you are requesting W-9 from your American affiliates!
Some sponsors seem to think that if the "exempt from back-up withholding" box is not checked, then the affiliate is subject to back-up withholding. And then the sponsor thinks that they need to withhold 28% of payments.
This is not the case!
All individuals / sole-proprietors should not be checking the "exempt from back-up withholding" box. If they do, the form will likely be INVALID. The "exempt" box indicates that the affiliate, as a result of its business structure, is CATEGORICALLY exempt from back-up withholding. This is true in most cases for CORPORATIONS but NOT for individuals / sole-props.
Instead, Part II of the form is a certification by the affiliate that he/she/it is not subject to back-up withholding. It is THIS CERTIFICATION that is needed- not the "exempt" box being checked- so that the Sponsor is not required to withhold 28% from affiliate payments.
This is all in the W-9 form instructions if the Sponsors care to read it. It is a little obscure, but still that's no reason for Sponsors not to know what's going on.
Some sponsors seem to think that if the "exempt from back-up withholding" box is not checked, then the affiliate is subject to back-up withholding. And then the sponsor thinks that they need to withhold 28% of payments.
This is not the case!
All individuals / sole-proprietors should not be checking the "exempt from back-up withholding" box. If they do, the form will likely be INVALID. The "exempt" box indicates that the affiliate, as a result of its business structure, is CATEGORICALLY exempt from back-up withholding. This is true in most cases for CORPORATIONS but NOT for individuals / sole-props.
Instead, Part II of the form is a certification by the affiliate that he/she/it is not subject to back-up withholding. It is THIS CERTIFICATION that is needed- not the "exempt" box being checked- so that the Sponsor is not required to withhold 28% from affiliate payments.
This is all in the W-9 form instructions if the Sponsors care to read it. It is a little obscure, but still that's no reason for Sponsors not to know what's going on.
Comment