Hello everyone, this topic is a very important topic for me as I am the one requesting and receiving the W9's as well as a signed copy of our IC Agreement. I would first like to state that it is the responsibility of the Independent Contractor to claim all monies earned regardless of what the amount is. With that said, you are correct in that we do not send out a 1099 unless you have made $600 or more with our company.
Let me tell you about our company, we actually have three companies on the ISS Platform so if you complete a shop for any of the companies, your shop pay is added all together into one large sum. As you can see, tracking every shopper's payment from three different companies to see if they are getting close to the $600 amount would be nearly impossible. It's a week long process at the end of the year just to marry the companies and the shopper fees to ready them for tax purposes.
But that really doesn't matter because the bottom line is that a W9 is required from every Independent Contractor, regardless of how much they make, so that we can be in compliance with the IRS. The IRS is fighting to make all shoppers employees of each and every mystery shopping company that the shopper works for. We are fighting to keep shoppers as Independent Contractors. So the IRS is now coming down hard on all companies and have begun doing random audits not only of companies but of shoppers. And while completing those audits they request that we show proof of the W9's from each Independent Contractor. The other company states they will only hold the W9's until they are no longer needed. As far as the IRS is concerned that would be for the next 10 years.
We do understand your concerns about privacy and being compromised and take all the precautions possible to keep your information safe. We also state in our contract that it is required to be able to complete jobs for our company. So shoppers have the option not to work for us if they do not want to fill out the forms. We do accept either a SS# or an EIN but ask that you do not send both as we will automatically use the SS#.
I am not sure which company you are referring to in this thread but they are doing the MS community a huge injustice by taking this route. Please note that we have the MSPA backing us on this and I myself have attended three MSPA Webinars in the last year regarding this topic and how important it is to be in compliance with the IRS and keep this business Independent Contractor based.
On a final note, we only pay by PAYPAL and we still 1099. Just wanted to clarify that being paid by PayPal is not a 'Get Out of Paying Taxes' card.
If you have any other questions please email me directly, I would love to try and answer them or help you find the answers. Thank you.
Sincerely,
Emma A. Valdivieso
Accounting Manager
Mystery Shopper Services, BMA, Customer 1st
Phone: 805-472-4396
Toll Free: 888-300-8292 extension 1009
Email:
emma@mysteryshopperservices.com
Website: www.mysteryshopperservices.com
MY Hours: 8:00am – 5:00pm (PST)