Form 1099 (1099-NEC)
Form 1099-NEC is a US tax form a business files to report non-employee compensation, such as affiliate commissions of $600 or more paid to a US person in a year, with a copy sent to the affiliate.
Merchants collect a W-9 from US affiliates to gather the taxpayer information needed to issue a 1099-NEC at year end. The form reports total non-employee compensation to the affiliate and the IRS once it crosses the reporting threshold.
Foreign affiliates typically submit a W-8BEN instead and are generally not issued a 1099. Keeping tax forms on file before the first payout lets a program report payments correctly and apply any required withholding.
See also
- Tax Form (W-9 / W-8BEN)
A tax form such as the W-9 or W-8BEN collects the legal and tax information a merchant needs to pay an affiliate and meet reporting obligations.
- Payout Cadence
Payout cadence is how frequently an affiliate program pays out approved commissions, such as weekly, monthly, or net-30 after a sale clears.
- Commission
A commission is the payment an affiliate earns for each qualifying conversion they drive, set as a percentage of the sale or a fixed amount per action.
- Net-30 / Net-60 Payment Terms
Net-30 or net-60 payment terms mean a commission or invoice is paid within 30 or 60 days after it is approved or the sale clears, giving a buffer for refunds and reconciliation before money leaves.
Turn the theory into a live program
Afflio handles tracking, commissions, and payouts so you can run the program these terms describe — start free in an afternoon.
Find brands to promote →