# Affiliate Tax Forms for Brands: W-9, 1099 and W-8BEN

Source: https://recruitaffiliates.ai/blog/affiliate-tax-forms-for-brands

# Paying affiliates: W-9, 1099 and what a brand must collect

By the RecruitAffiliates.ai team · 10 November 2026 · 8 min read

Facts about other tools come from their own sites, with the date we checked. [Our editorial policy](https://recruitaffiliates.ai/editorial-policy) · [About us](https://recruitaffiliates.ai/about).

In short

A US brand that pays affiliates collects a tax form before the first payout. A W-9 from US affiliates, a W-8BEN from non-US ones. The brand may then file a 1099-NEC by January 31. This guide sets out the forms, the IRS thresholds and the order to do it in. It is general information, not tax advice.

This is general information, not tax advice. Tax rules depend on your business and on where each affiliate lives. Check your own case with an accountant.

A US brand should collect a tax form from each affiliate before the first payout. A US affiliate gives you a **W-9**. A non-US affiliate gives you a **W-8BEN**. At year end you may need to report what you paid on a **1099-NEC**. The rest of this guide explains each form and the order to use them in.

Some brands look for an **affiliate tax service**. That is software or an accountant that collects the forms and files the reports. You can collect by hand, or let your affiliate app do it. This guide covers what has to happen either way, so you can judge any tool.

**On this page 9 sections**

1. [Which form does each affiliate give you?]
2. [What is the 1099-NEC, and when does a brand file it?]
3. [What if an affiliate won't give you a form?]
4. [What do you collect from a non-US affiliate?]
5. [Does Shopify Collabs handle this for you?]
6. [What order should you do it in?]
7. [Where RecruitAffiliates.ai fits]
8. [Frequently asked questions]
9. [Sources]

## Which form does each affiliate give you?

Ask for the form before you pay, not after. The table shows the three forms side by side. The "What it is" column comes from the IRS pages under Sources. The "Who" column is our reading of them.

| Form | Who gives it | What it is |
|---|---|---|
| W-9 | A US affiliate | Their legal name and taxpayer ID |
| W-8BEN | A non-US individual | Certifies they are a foreign person |
| 1099-NEC | You, to them and the IRS | A report of what you paid |

A **taxpayer ID number** (TIN) lets the IRS match a payment to a person. For a US individual it is usually a Social Security number. For a business it is usually an employer ID number.

The IRS says Form W-9 gives the requester a correct TIN. The requester is whoever must file an information return with the IRS ([IRS, About Form W-9](https://www.irs.gov/forms-pubs/about-form-w-9), 27 June 2026, checked 10 November 2026). As the brand, you are that person.

## What is the 1099-NEC, and when does a brand file it?

The IRS says to use Form 1099-NEC for nonemployee compensation ([IRS, About Form 1099-NEC](https://www.irs.gov/forms-pubs/about-form-1099-nec), 7 June 2026, checked 10 November 2026). **Nonemployee compensation** is money you pay someone who isn't your employee. An affiliate on commission is usually not on your payroll. So this is usually the form that applies.

Three figures from the IRS instructions matter:

- The reporting threshold is $2,000 for the year, for tax years beginning after 2025.
- The form is due to the recipient and to the IRS by January 31.
- Payments to corporations generally don't need a 1099-NEC. That includes LLCs taxed as C or S corporations. There are exceptions, so ask your accountant about any affiliate that is a company.

([IRS, Instructions for Forms 1099-MISC and 1099-NEC](https://www.irs.gov/instructions/i1099mec), checked 10 November 2026.)

Here is a made-up example. Say you pay one affiliate $1,500 across the year and another $2,500. At a $2,000 threshold, only the second one reaches it. The IRS instructions say "$2,000 or more". Add up each person's payments for the whole tax year, not per payout.

The instructions also cover card payments and some third-party network payments. The payment company reports those on Form 1099-K, not on a 1099-NEC. Ask your accountant whether your payout method counts.

## What if an affiliate won't give you a form?

The IRS gives a reason to ask for the W-9 up front. Backup withholding applies when a payee hasn't given the payer a correct TIN. The payer must then withhold from future payments, at a current rate of 24 percent ([IRS, Backup withholding](https://www.irs.gov/businesses/small-businesses-self-employed/backup-withholding), 10 October 2026, checked 10 November 2026). **Backup withholding** means you keep part of each payment and send it to the IRS.

So make the form a condition of the first payout. Put one line in your terms: "We pay commission once we have your tax form." Our [affiliate agreement template](https://recruitaffiliates.ai/blog/affiliate-agreement-template-shopify) shows where.

## What do you collect from a non-US affiliate?

Ask for a W-8BEN if the affiliate is a non-US individual. The IRS instructions say the form shows you are not a US person. It can also claim a lower withholding rate under a tax treaty. It goes to the payer, not the IRS ([IRS, Instructions for Form W-8BEN](https://www.irs.gov/instructions/iw8ben), revised October 2021, checked 10 November 2026).

Two details from the same page help you plan:

- The form generally stays valid to the end of the third calendar year after signing. A change in circumstances can end it sooner.
- Without the form, a payer may have to withhold at 30% or at the backup rate.

A non-US company uses a different form, the W-8BEN-E ([IRS, About Form W-8BEN-E](https://www.irs.gov/forms-pubs/about-form-w-8-ben-e), checked 10 November 2026). This guide doesn't cover it in detail.

We could not confirm which payments to non-US affiliates need a US report. The IRS uses Form 1042-S for income paid to foreign persons and the tax withheld from it ([IRS, About Form 1042-S](https://www.irs.gov/forms-pubs/about-form-1042-s), 15 September 2026, checked 10 November 2026). Ask your accountant which form applies to each non-US affiliate and where the work was done.

## Does Shopify Collabs handle this for you?

Partly. A US merchant can ask creators for a W-9. Shopify says the creator must send it at the $599.99 USD payout mark. Without one, payouts are capped at $599.99 USD for the year ([Shopify Help Center, Collabs payments for creators](https://help.shopify.com/en/manual/promoting-marketing/collabs/creators/payments), checked 10 November 2026).

The same page says merchants and creators are each responsible for their own tax obligations. So an app that collects the form helps, but it doesn't remove your duty. To see how Collabs moves money, read [how the money moves](https://recruitaffiliates.ai/blog/shopify-affiliate-marketing-money) and [Shopify Collabs explained](https://recruitaffiliates.ai/blog/shopify-collabs-explained).

## What order should you do it in?

Follow this order for each new affiliate. It takes a few minutes of your time once it is set up.

1. **Approve the affiliate.** Ask where they live and whether they earn as a person or a company. Add both to your [application form](https://recruitaffiliates.ai/blog/affiliate-application-form-questions). The answers tell you which form to ask for.
2. **Send the right form.** A W-9 for a US affiliate, a W-8BEN for a non-US individual, a W-8BEN-E for a non-US company.
3. **Hold the first payout until the form is back.** State this in your terms.
4. **Keep the forms safe.** Store them where only you and your accountant can see them. They hold tax ID numbers.
5. **Total each person's payments at year end.** Compare each total with the $2,000 threshold.
6. **File by January 31 for each person at $2,000 or more.** Send each recipient a copy and file with the IRS. Or hand the list to your accountant.

Add steps 2 and 3 to your [affiliate onboarding checklist](https://recruitaffiliates.ai/blog/affiliate-onboarding-checklist). Then nobody gets paid before the form arrives.

## Where RecruitAffiliates.ai fits

RecruitAffiliates.ai finds the people and sends the first email. It doesn't collect tax forms, pay anyone or track sales. You still need an **affiliate tool** that tracks sales and works out what you owe. You also need a plan for forms.

You enter your website. It finds the sites and channels already covering shops like yours. It looks for each person's email and checks it, so you get a [verified email](https://docs.recruitaffiliates.ai/credits#what-each-result-means). AI drafts a personal first email. You approve it, and it sends from your own inbox.

Launch is $79 a month for one brand, with a 7-day free trial and no card.

Try it on your store

See who would promote a shop like yours.

Type your store's website. We find the bloggers, review sites and creators who already cover shops like yours, and show the page we found each one on. Keep the affiliate app you use now.