--- title: Understand W-9 and 1099 filings slug: understand-w-9-and-1099-filings description: See how Roster's payment platform collects W-9 and W-8BEN forms and handles 1099 filing for ambassadors, giving you built-in tax compliance. createdAt: 2025-12-09T18:26:12.941Z --- One of the key benefits of Automated Payments is built-in tax compliance. Roster's payment platform (Dots) handles W-9 and W-8BEN collection from ambassadors and manages 1099 filing on your behalf. This article explains how it works and what you need to know. ## Overview When you use Automated Payments, tax compliance is handled for you: - **W-9 collection** from U.S. ambassadors - **W-8BEN collection** from international ambassadors - **1099 filing** for U.S. ambassadors who meet the IRS reporting threshold - **Identity verification** as part of the onboarding process You don't need to collect tax forms separately, track thresholds, or file 1099s yourself. ## How Tax Forms Are Collected ### During Wallet Setup Tax information is collected as part of the ambassador's wallet onboarding flow. When an ambassador sets up their payment wallet, they go through: 1. **Phone number verification** 2. **Identity verification** 3. **Tax form completion** — W-9 (U.S.) or W-8BEN (international) 4. **Payout method setup** The tax form step is required — ambassadors cannot complete wallet setup without providing their tax information. This ensures that by the time they receive their first payment, their tax information is already on file. ### W-9 (U.S. Ambassadors) U.S.-based ambassadors complete a W-9 form during wallet setup, providing: - Legal name - Tax identification number (SSN or EIN) - Address - Tax classification ### W-8BEN (International Ambassadors) International ambassadors complete a W-8BEN form, providing: - Legal name - Country of citizenship - Foreign tax identification number (if applicable) - Address - Treaty benefits claim (if applicable) ## 1099 Filing ### Who Receives a 1099? Dots handles 1099 filing for U.S. ambassadors who meet the IRS reporting threshold in a calendar year. The current IRS threshold for 1099 reporting applies (check IRS guidelines for the current year's threshold). ### How It Works 1. **Throughout the year:** Dots tracks payments made to each ambassador through automated payments 2. **After year-end:** Dots generates and files 1099 forms for ambassadors who meet the threshold 3. **Ambassador notification:** Ambassadors who receive a 1099 are notified and can access their form through their Dots account ### What You Need to Do **Nothing.** Dots handles the entire 1099 process: - Tracking payment totals per ambassador - Determining who meets the filing threshold - Generating 1099 forms - Filing with the IRS - Making forms available to ambassadors ### What About Payments Made Outside Automated Payments? 1099 forms generated by Dots only reflect payments made through the automated payments system. If you also pay ambassadors through PayPal, external payments, or other methods, those amounts are **not included** in the Dots-generated 1099. You may need to handle separate 1099 filing for payments made outside of automated payments, depending on the total amount and your tax obligations. Consult your tax advisor for guidance. ## Identity Verification As part of the wallet setup process, Dots performs identity verification on ambassadors. This serves multiple purposes: - **Tax compliance** — Ensures tax information matches the ambassador's identity - **Fraud prevention** — Protects against unauthorized wallet creation - **Regulatory compliance** — Meets KYC (Know Your Customer) requirements Identity verification happens once during initial wallet setup and doesn't need to be repeated. ## What Brands See In the Brand Portal, you can see: - **Wallet setup status** — Whether an ambassador has completed the full onboarding (including tax forms) - **Payment readiness** — Ambassadors who haven't completed setup show as "Setup Required" You **cannot** see the ambassador's specific tax information (SSN, EIN, etc.) in Roster. This data is securely stored by Dots. ## What Ambassadors See Ambassadors can: - **Complete tax forms** during wallet setup via the secure Dots flow - **Access their 1099** (if applicable) through their Dots account after year-end - **Update tax information** if needed through their Dots account settings ## Emails from Dots All Dots-related emails (including tax form notifications) are branded as coming from Roster, so ambassadors see a consistent experience. This includes: - Wallet setup confirmation - Tax form reminders - 1099 availability notifications ## Frequently Asked Questions ### Do I need to collect W-9s separately? No. W-9s are collected automatically during the wallet setup process. You don't need to send separate requests or manage form collection. ### What if an ambassador refuses to provide tax information? They won't be able to complete their wallet setup and therefore won't receive automated payments. Their commissions remain in the system and can be paid through alternative methods (PayPal, external payments) if needed — but those methods don't include automatic tax compliance. ### Does Roster store ambassadors' tax IDs? No. Tax information (SSN, EIN, foreign TIN) is stored securely by Dots, not by Roster. Roster does not have access to this sensitive data. ### What about state-level tax filing? Dots handles federal 1099 filing. State-level requirements vary and may require additional filing on your part. Consult your tax advisor for state-specific obligations. ### What if an ambassador is paid by multiple brands on Roster? Each brand's payments are tracked separately. If an ambassador receives automated payments from multiple Roster brands, each brand's payment total is reported independently. The ambassador uses the same Dots wallet, but 1099 obligations are per-payer. ### When are 1099s sent? Dots follows the IRS deadline for 1099 distribution (typically January 31 for the prior tax year). Ambassadors are notified when their form is available. ## Related Articles - [Understand the ambassador payment experience](docId\:uK6AMUTnRfLPz0vCgCXPJ) - [Getting started with automated payments](docId\:kxkTbRhvkt85lgCgCosWF) - [Automated payments FAQs](docId\:GTz0HZPAASpv0DFofvTrk)