Author Royalty Information

Frequently Asked Questions:

• How do I get paid?
  
  Yodio uses a $ 50 minimum threshold for payout of earnings. Your balance accrues until your account balance is greater than $ 50. Once your earnings balance is greater than $ 50, you can request a “payout” of $50 or more. Your payment will be issued with our next payment batch (normally within 24 hours) processed through Pay Pal and deposited in your Pay Pal account. Regardless of the balance of your account, your account balance is available for purchases on Yodio site.
  
  
• Do you offer any payment options other than by PayPal?
  
  No. At this time, PayPal is the only payment method. It is free to open a Paypal account. You simply provide your bank account to PayPal when you open the account. You provide us with the email address that is associated with your PayPal account and we'll send the money to that account. You do not provide Yodio with any sensitive bank information. Your PayPal email address is required as part of author registration. It can be different than the address you use as a Yodio member. It is your responsibility to keep your PayPal email information current in your Yodio profile.
  
  
• How do I check my revenue online?
  
  You can check your revenue by logging into your account. The author “dashboard report” will provide a near real time view of your sales, account balance, and other helpful tracking information. These on-line reports are available on daily, weekly, or monthly time periods based on the options you’ve selected.
  
  
• How often do I get sales/customer profile information?
  
  On-line reporting of Sales and Customer profile information is available in your author “dashboard report”. Since this is a virtual reporting system, the information should be current and timely whenever viewed. Any you are able to view this information at any time convenient for you.
  
  
• How do I change my payment information, email address, etc.?
  
  You can change this information in your Yodio account. Make sure to update this information in all applicable areas of your account information. Your payments are based off the information in your Yodio member and author account.
  
  
• Do you send tax information?
  
  Yes, we send all tax documents that are required by the IRS. For domestic authors, we send 1099 Forms, as appropriate, at the end of the year. Royalties that amount to $600 or more in a year require a 1099.
  
  Corporations have Federal Tax IDs. We are not required to mail corporations 1099s. However, we do send 1099s to sole proprietorships and partnerships that are domestic. Other forms of business may also have Federal Tax IDs as well. But, if not, then we need the social security number or the EIN (employee identification number).
  
  
• What if I'm not in the United States?
  
  For foreign authors, we e-mail 1042-S Forms with gross income and withholding rates. See below for additional tax information for authors outside the United States.
  
  

  • What is VAT?
    
    VAT stands for Value Added Tax. A new Value Added Tax (VAT) law, effective July 1, 2003, will impact all online sales in the European Union (EU). Different VAT rates need to be collected for each EU country. The great news is Yodio will handle this new process. We will file in the U.K. and fall under the special provision section. We will collect the appropriate tax based on the country of origin of the buyer (beginning July 1). This will be automated and requires nothing on your part. Yodio will provide all of the reporting and payments to the EU.
    
    
  • What is the policy on tax withholding for international partners?
    
    The IRS (Internal Revenue Service -- the taxing entity in the US) requires that we withhold 30% from all payments to International companies whose country of residence does not have a tax treaty with the US This is required by law. If your country has a tax treaty with the US government, the withholding rate will be from 0-30% depending on your country's tax treaty. You may be able to deduct the full amount of the withholding tax from your local income taxes. Because this varies from country to country, we recommend that you consult with your tax advisor. Publication 515 will provide you with more information about the withholding of tax on nonresident aliens and foreign corporations. If you have any questions, please contact us here.
    
    
  • Other companies are not withholding, why is Yodio?
    
    Yodio cannot speak for other companies as to why they are not withholding taxes. Yodio has consulted with our lawyers and concluded that to abide by US tax laws, we need to withhold and submit the taxes to the IRS. Please refer to the Publication 515 link for more information.
    
    
  • I do not live in the US, why do I have to pay taxes to the IRS?
    
    The programs are downloaded from a US server on US soil; therefore, it is subject to US taxes. Some countries have credits for foreign taxes paid; please consult with your local government to determine if you're eligible.
    
    
  • Wll I get a document stating the amount deducted?
    
    1042-S will be sent out in March of each year indicating all payments made as well as deductions.
    
    
  • Do I have to file with the IRS?
    
    No. Yodio is withholding the tax and is submitting it on your behalf to the IRS. To file with the IRS yourself and not have Yodio withhold the money for you, please contact us here. Please note that you will still be liable to pay taxes to the IRS for revenue earned in the US.
    
    If you request to file on your own, we will send you a form to fill out and send back to Yodio once your registration with the IRS is complete. You will first need to register with the IRS, who will provide you with a valid tax number which must be provided to Yodio before we cease to withhold. Please note that this process will take approximately two months.