Tax Forms for Ethnio Rewards

If you've received above $600 USD in a single calendar year for certain customers of Ethnio Rewards, you'll receive a request to submit either

🇺🇸 United States: W-9 Form
🌎  Global: W-8 Form

What is a W-9 Form?

The W-9 form, officially titled "Request for Taxpayer Identification Number and Certification," is a crucial document utilized by the Internal Revenue Service (IRS) in the United States. Its primary purpose is to collect key information from individuals who work as independent contractors or freelancers. Here's a detailed explanation:

  1. Identification of Taxpayers: The W-9 form requests specific information to accurately identify taxpayers. This includes the taxpayer’s name, address, and most importantly, their Taxpayer Identification Number (TIN), which could be a Social Security Number (SSN) or an Employer Identification Number (EIN) for businesses.
  2. For Tax Reporting Purposes: When a business hires an independent contractor and pays them more than $600 over the course of a tax year, the IRS requires that business to report these payments. The W-9 form provides the necessary information to the business so that they can correctly report the payments to the IRS.
  3. Used in Issuing 1099 Forms: The information collected through the W-9 is used by businesses to fill out 1099-MISC or 1099-NEC forms, which are then sent to both the IRS and the independent contractor. These forms report the amount of income the contractor received from the business during the tax year.
  4. No Direct IRS Submission: Unlike many tax forms, the W-9 is not typically sent directly to the IRS by the individual. Instead, they provide it to the business or entity that is paying them. It’s the payer’s responsibility to use the information from the W-9 for tax reporting purposes.
  5. Legal Compliance and Accuracy: The W-9 form is also a declaration by the contractor that the information they are providing is accurate. Misrepresenting one's identity or TIN can lead to significant legal and financial penalties. Therefore, it’s crucial for independent contractors and freelancers to provide accurate and current information on their W-9 forms.

Why Ethnio Rewards Collects W-9 Information

Collecting W-9 forms is a legal requirement for certain Ethnio customers that structure payments exceeding $600USD per year to any individual. This is in compliance with IRS regulations.The information is used for accurate tax reporting, specifically for issuing 1099-MISC forms to participants who exceed the threshold.

Threshold for Collecting W-9 Information

  • $550 limit explained: Detail that once a participant's earnings from Ethnio Rewards exceed $550 in a calendar year, the W-9 collection becomes necessary.
  • Calendar year definition: Ensure it's clear that the calendar year is from January 1st to December 31st.

Process of Submitting W-9 in Ethnio Rewards

You will receive an email with a secure upload link for your completed W-9 form to be uploaded. Security and privacy measures are in place to protect the sensitive information, and forms will be destroyed after the regulatory period is complete. 

This article aims to educate and reassure your about the importance and process of submitting W-9 information to Ethnio in a user-friendly and approachable manner. Please contact us at with any questions at all.

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