What is PayPal?
PayPal is a service that gives people and businesses simpler ways to send money without sharing financial information, and with the flexibility to pay using their account balances, bank accounts, credit cards or promotional financing.
Why is TapInfluence switching from checks to PayPal?
By switching to PayPal, you no longer have to wait for your mailman to deliver your TapInfluence check. With a PayPal account, you can select your method for receiving payments, and easily keep track of your payment history.
In addition, we will no longer be sending 1099s to influencers or requiring W-9s. Influencers who received payments of over $600 from TapInfluence in 2013 will receive a 1099. For the tax year of 2014 and on, 1099s will no longer be sent.
When is the change effective?
The change is effective 1/1/14. This means that if you accept an opportunity in the Marketplace that is paid, you will be required to provide an email address for PayPal.
How do I receive payments via PayPal?
When a payment is due, you will receive an email from PayPal to let you know that you have a payment ready to be received. To receive your payment, you must open a PayPal account and confirm that email address. If you already have a PayPal account, log in to your account and click ‘History’ near the top of the page to view the details of your payment.
As soon as you receive the payment, it goes into your PayPal balance. When you have a PayPal balance, you can either use those funds to send a payment or you can withdraw the funds. Log in to your account and click "Withdraw" to view your withdraw options.
What if I don’t have a PayPal account?
If you don’t have a PayPal account you must still provide your preferred email address in your TapInfluence profile (after 1/20/14). When a payment is due, you will receive an email from PayPal to let you know that you have a payment ready to be received. At this time, PayPal will walk you through opening a PayPal account and receiving payment.
Does it matter what type of PayPal account I have?
No, it does not. You will still receive an email from PayPal to let you know that you have a payment ready to be received. Then log in to your account and click "History" near the top of the page to view the details of your payment.
Will I be charged a fee to receive payment?
No, you will not be charged a fee to receive TapInfluence payments via PayPal.
What are TapInfluence payment terms?
For payments made by TapInfluence, payment terms are as follows: TapInfluence will pay all Fees in accordance with the applicable payment terms and rates outlined in the Program Details within thirty (30) following the last day of the month in which Influencer Content was posted (e.g., for Influencer Content submitted in the month of August, TapInfluence will remit payment to Influencer by September 30). Influencer understands that payment is contingent upon providing their PayPal email to TapInfluence within their platform profile.
Will I still receive a 1099 from TapInfluence?
Influencers who received payments of over $600 from TapInfluence in 2013 will receive a 1099. For the tax year of 2014 and on, 1099s will no longer be sent.
The reason that TapInfluence will no longer be sending 1099s with the switch to PayPal is because per the IRS instructions payments made via PayPal must be reported on form 1099-k and are excluded from a 1099-misc. Payments made with a credit card or payment card and certain other types of payments, including third party network transactions, must be reported on Form 1099-K* by the payment settlement entity under section 6050W and are not subject to reporting on Form 1099-MISC.
What this means is that if you receive payment from other companies via PayPal, they should not be sending you a 1099-misc, and your income should not be reported twice.
*Per Internal Revenue Code (IRC) Section 6050W PayPal is required by the Internal Revenue Service (IRS) to report gross payments received for sellers who receive over $20,000 in gross payment volume and over 200 separate payments in a calendar year. For more information about IRC Section 6050W visit PayPal’s site.
Where in my TapInfluence profile do I add my PayPal email?
To add your PayPal email to your TapInfluence account, make sure you are logged in. Once logged in, select the "Profile" section from the top of the page. Then go to the "Contact Information" section and click on "Edit." Enter your PayPal email and click on "Save".