WP1099 was created to fill a need in the WordPress Affiliate and Marketplace plugin space. Many site owners are unaware of the complicated IRS tax requirements, or if they are aware of them they don't have the time to make sure they are compliant. When a site owner doesn't know that they need to file certain forms to remain compliant they could face stiff penalties from the IRS and various state revenue departments.
WP1099 helps site owners by:
- Aggregating Payouts: Most affiliate and marketplace plugins show you the individual payouts made to each user. None of them really do a good job at aggregating the data in a way that is useful for tax reporting purposes. Our plugin will automatically add up all of the payouts during the year.
- Filing the Forms Correctly: At the end of the year, our plugin looks at all the data we have for each of your affiliates or vendors to determine what amounts need to go in each box on the 1099-MISC or 1099-NEC. We export this information to a CSV file for you, which gives you the opportunity to review the information that has been exported to see if anything is missing. For example, you may have made payments to a vendor offline that were not captured in the connected plugins. Once everything looks good, you can submit the CSV file to your CPA or any number of third-party 1099 filing services.
Your site will have a WP1099 dashboard that lists all affiliates or vendors that have reached the minimum payment threshold for each compatible plugin on your site. For example, if you use AffiliateWP for your affiliate program, and also run a marketplace using EDD Commissions you can see the payouts for each plugin.
WP1099 is perfect for site owners who:
- Run an affiliate or marketplace program on their website.
- Use WordPress to run their website and any of the compatible plugins.
- Are based in the United States, with affiliates or vendors who are also located in the United States.
Forms We Handle
The only forms we report on are the IRS forms 1099-MISC and 1099-NEC. This is sufficient in the majority of cases for our users. Most states participate in what is known as the Combined Federal State Program, where your 1099 filings to the IRS is automatically forwarded to the appropriate state tax department(s).
However, there are some states that require a separate filing that we do not specifically handle.
What We Don't Handle
We do not file the 1099-MISC or 1099-NEC forms for you. Our plugin provides an export of the information you will need from the affiliate or multivendor marketplace plugins on your site in order to file those forms.
Why don't we file those for you? In order for our plugin to do that we would have to collect and store sensitive personal information, like social security numbers, on your website. In our research this would put your site in violation of the terms and conditions at the vast majority of the most popular web hosts. To avoid getting your site shut down for a violation like that we decided it's best to let you handle that type of information separate from your website.
You will be responsible for collecting a W9 from each vendor or affiliate that you will be issuing a 1099-MISC or 1099-NEC form to. Fortunately, collecting this information is relatively easy. Simply send your vendors a copy of the W9 form and ask them to fill it out for you. Once you have it on file, you shouldn't need to ask for it again unless their information changes in the future. A gentle reminder email during the year might be a good way to make sure their information is up to date.