Payment History vs payment made - significant discrepancy.
Posted: Friday, August 16, 2019 12:13:27 AM
Hope someone can help, as I keep thinking I've overlooked something. At the first of this month I cleared approximately $50, $38 of which was in USD, and the rest was converted from different currencies (payment history gives the break down and exchange rates). During payment on the 15th I was expecting to receive the full amount showing in payment history, but was only paid approximately $35.

Previously when I've had a payout, the payment history tallied with what I got paid, so I don't know why the numbers don't match? Anyone else experienced this, if not what have I missed? Thank you in advance!
Posted: Friday, August 16, 2019 12:48:31 AM
I think I've figured it out. The amount I got paid is exactly 30% less than the amount in the payment history (the amount taken if there is no treaty between the US and the country of residence). It should have been 5%, so something must be amiss with the w-8ben form.
In the past I've lived in a different country where the rate was 0%. I also believe w-8ben forms need renewing every 3 years.
Posted: Friday, August 16, 2019 12:51:01 AM
i noticed this today too, I can only assume its tax?
Posted: Friday, August 16, 2019 1:00:43 AM
I'm contacting the department who deals with the w-8ben forms, because it seems something is amiss with the form, which is why 30% was applied (a default rate for countries with no treaty). I believe if you can resolve it within 30 days, they will refund the difference.
Posted: Friday, August 16, 2019 1:17:48 AM
GillKnox, I've a feeling New Zealand might get charged at the full 30% I'm afraid. I hope I'm wrong, but I'm not sure they have a treaty in place.
Posted: Friday, August 16, 2019 1:49:58 AM
thanks Gavin, yup u probably right... still I do enjoy creating this stuff..... Smile
Posted: Friday, August 16, 2019 2:52:26 AM
Gavin wrote:
GillKnox, I've a feeling New Zealand might get charged at the full 30% I'm afraid. I hope I'm wrong, but I'm not sure they have a treaty in place.

For NZL, the rate is 10%, according to the IRS Tax Treaty of 1982, Art. 12 Paragraph 2.
Posted: Friday, August 16, 2019 3:29:30 AM
Worth investigating, and updating your w8ben form if that is the case, and verifying with Zazzle too.
Posted: Friday, August 16, 2019 3:34:54 AM
Gavin wrote:
Worth investigating, and updating your w8ben form if that is the case, and verifying with Zazzle too.

Checked it on the IRS site, here's the relevant PDF:

https://www.irs.gov/pub/irs-trty/newzld.pdf

The W-8BEN form has to be periodically checked and resubmitted after a few years, not sure if all 3 or 5 years.
Posted: Friday, August 16, 2019 6:25:57 AM
Shouldn't Z notify you if the the form needs updating? I'm expecting a payment this month, I'd be horrified if they deducted 30%, my sales have been so sporadic this year, I've been waiting months to reach the payment threshold.
Posted: Friday, August 16, 2019 6:59:17 AM
My last payment was 2014, so it's been four years for myself. The forms should be updated after three years. I didn't receive any notification and had simply forgotten all about it. I don't think you can view the w-8ben form from your Zazzle account, it's something that is emailed.
Posted: Friday, August 16, 2019 7:05:14 AM
waterart wrote:
Shouldn't Z notify you if the the form needs updating? I'm expecting a payment this month, I'd be horrified if they deducted 30%, my sales have been so sporadic this year, I've been waiting months to reach the payment threshold.

Z doesn't notify you, as I know. I had myself to upgrade an old W-8BEN. But it's something you can check on your own, if you know, when you have to resubmit a new one. Here's what Z states on their W-8BEN Help page:

There are instances where we will need a new W-8 form from you. Please send us an updated form if:

- Any of your information on the W-8 form changes (name change, address change, etc.)

- The IRS issues a newer version of the W-8 form.

- The life of your current W-8 form runs out. The life span of a W-8 form is 3 years from the date you signed your form.

- If the IRS issues new regulations that could impact your payment.

The link to Zazzle's full W-8BEN help:

https://help.zazzle.com/hc/en-us/articles/222706728-W-8-Forms



Posted: Friday, August 16, 2019 11:22:20 AM
In the link you provided it says "Zazzle will not process payment to non-residents unless a properly completed W-8BEN form is received." So Z should not send any payment until they receive the updated form if that in fact is what happened here.
Posted: Friday, August 16, 2019 12:42:53 PM
waterart wrote:
In the link you provided it says "Zazzle will not process payment to non-residents unless a properly completed W-8BEN form is received." So Z should not send any payment until they receive the updated form if that in fact is what happened here.

This only happens if you didn't submit any form. Another sentence states that not properly filled forms may result in a 30% deduction. Happened to me the first time I sent the form but didn't fill in correctly one point. I got the response that I would need to correctly fill in the resp. part or I would get a 30% deduction.

I didn't say that specific case here was due to a non-updated form. I only posted the link and quote to point out when you have to resubmit the form. It's possible, that the OP got the max deduction by mistake. In your case I would check, if your form is still valid and if not, download the newest one from irs and resubmit it. Better safe than sorry. Cheers!
Posted: Friday, August 16, 2019 1:00:05 PM
I thought all international sellers had to submit new forms in 2015. It was around the same time that US sellers had to comply with some new IRS rules about our names having to match exactly what the IRS had on file. If Gavin didn’t update in 2015, this could possibly be the reason for 30% being withheld.
Posted: Friday, August 16, 2019 1:39:49 PM
Maz wrote:
I thought all international sellers had to submit new forms in 2015. It was around the same time that US sellers had to comply with some new IRS rules about our names having to match exactly what the IRS had on file. If Gavin didn’t update in 2015, this could possibly be the reason for 30% being withheld.

You could be right. My old form was dated 2014 and in January 2018 I sent a differently looking one dated 2017.
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