Tax & EIN: What Every Purium Brand Partner Should Know

Taxes play an important role in every business. Your Purium business is no different. Here’s everything you need to know. 

What is a 1099 and how do I know if I need one? 

The 1099 is a United States tax form provided to Brand Partners who receive at least $600 worth of commissions in a given annual period. When a Brand Partner has earned this sum, Purium will request that they provide their Social Security Number (SSN) or Employer Identification Number (EIN) so we may issue this form during tax-filing season the following year. 

Do Canadian and Platinum Health Europe Brand Partners get issued a 1099? 

No. Purium Brand Partners in Canada and Europe are responsible for filing taxes in accordance with local laws.

What happens if I do not provide a valid SSN or EIN number to Purium? 

All Brand Partners receiving commissions that add up to $600 per year are required to furnish Purium with their correct Social Security number, or Employer Identification Number.

Brand Partners who do not furnish a SSN or the equivalent will find their bonuses and commissions subject to withholding at 31% if:

1. The aggregate amount of such payments and all of the previous payments for the calendar year equals or exceeds $600; 
2. Purium was forced to file a 1099 Form for the Brand Partner for the previous calendar year

Purium will contact Brand Partners via email when they have achieved $600 or more in commissions for a given year and have not provided a Tax Payer ID. However it is recommended to provide this information at time of account creation in order to avoid withholding of commissions. Set the intention that you will make over $600 in your business. 

New Brand Partners can enter their Legal Name in the Back Office in the Account Settings section (see screenshot below). This field must match the SSN or EIN on file so no back-up withholdings are triggered. The good news is your preferred name can now be on the Purium account and your legal name with the IRS will be in the "Legal Name" field. The "Legal Name" field is not visible when your Gift Card is utilized. 

Changing Your SSN on File

In 2020, we associated the SSN to the first person in the account holder name. Typically, if an individual and their spouse have the same last name it validates with the IRS. When married couples or partners have different last names, this could trigger an invalid match with the IRS and cause back-up withholdings of your commission.

We can clear the invalid information out. Once we clear the information, you may be able to enter the correct information. 

✨ NEW FORM ✨: Use this new special attachment form to submit your W9 with correct tax information. Click here to submit. 

How do I view my 1099? 

If you made over $600 in 2020, your 1099 can be viewed in iLearn. 

1099s are now available for digital download in ILearn. Login and click link directly above the Get Started Module. If you had back-up withholdings, you will see an amended 1099 form amended back-up withholdings on the same form.

Do you have a question that we did not answer? Submit your inquiry here: http://bit.ly/AskPurium