#Triz

1 messages · Page 1 of 1 (latest)

dusty berryBOT
timber sundial
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@twin tundra let's chat here!

twin tundra
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Hi thanks for the fast follow up

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We use stripe integration into our platform that allows brands to pay content creators (freelancers). However they want to know how the tax/w9 process is handled to ensure they have proper record of files for taxes paid and to ensure the freelancers put in their tax IDs.

timber sundial
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Just to be clear, does this mean your Stripe integration uses Stripe Connect?

twin tundra
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Yes we use Stripe connect

timber sundial
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Got it, okay. As a platform, you have some tax obligations to each of the brands/connected accounts. However, I don't think we can advise on the tax obligations your brands have for each of their content creators/freelancers

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We're not tax experts in this channel, so I recommend chatting with our support team about this: https://support.stripe.com/?contact=true

The brands will likely need to get their own tax advice for handling reporting to their creators

twin tundra
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It's not so much about the tax obligations, but how the process works. Do the creators need to create a stripe account to recieve payments from the brands? Because then the creators could easily provide their tax ID when sending the invoice through our platform

timber sundial
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No, that shouldn't be necessary. Your platform transfers funds to your connected accounts (brands). The connected accounts pay out these funds to their own external bank accounts. The brands would need to distribute funds to the creators after this

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There's no third layer/grandparent level in Connect

twin tundra
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Our platform just serves as a gateway for the brands to the creators. Think of it like Fiverr without fiverr fees. We don't charge them a fee for the payment processing or take any cut (apart from stripe fees that the brands are responsible for).

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so the brands use our platform for managing social media campaigns, creators use the platform to deliver project items. Campaigns are complete. And then the brand pays the creators after the campaign is over

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It's just for convenience factor

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So do creators have to register their own stripe account, and then from there are responsible for inputing their own tax information? A creator cannot collect tax if they don't have a Tax ID and the brands don't have to pay tax if the creators don't provide the tax id. So does stripe automatically determine the taxable amount? I use this feature https://stripe.com/en-ca/tax for collecting payments from agencies/brands that pay our subscription fee

Stripe Tax: Automate tax collection on your Stripe transactions

Stripe Tax lets you calculate and collect sales tax, VAT, and GST on your Stripe transactions. Know where to register and automatically collect taxes.

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that automatically determines the tax rate etc of the customer based on their information and location

timber sundial
twin tundra
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Yes the brands subscribe to our SaaS platform, and want a simplified way to manage payments to creators they discover in our platform rather than using an outside tool. We don't have any tax liabilities here as a marketplace facilitator because we don't charge a transaction fee to the brands for working with creators. We're also based in Canada.

timber sundial