Beginning on February 15th 2017 there will be some significant changes to the way payments are made to our distribution and Connect clients.
Weekly Payment Processing
Starting February 15th we will process all payment requests on Wednesday of each week, meaning we will process your payment request on the Wednesday after it is submitted. Your payment must have been received by midnight GMT on the previous Tuesday to be processed.
This change will not only create a reliable and consistent system, but will help you to organize and plan when you’d like to request payments. You will still be able to request a payment at any time, but with this new system you will know exactly when your payments are being processed and when you are likely to receive them (based on the timelines outlined for whichever payment method you choose). We will continue to send out statements on the first Monday of each month.
PayPal Mass Pay
In order to streamline our PayPal payment transfer system, minimize errors and make the process quicker and more reliable, we are introducing PayPal Mass Pay on February 15th. This option becomes available when you choose to receive payments via the PayPal option on the Distribution > Statements page (once you hit the $100 minimum threshold). To learn more about how to view your statements and request payments, click here.
The main change you will notice is that Label Engine pays the PayPal transaction fee which will be deducted from your payment.
- For US customers the fee amount can be calculated at 2% of the total amount, capped at $1.00 USD.
- For international customers, the fee amount can be calculated at 2% of the total amount, caped at $20.00 USD.
- PayPal will not charge you an additional fee to receive the payment, however you may be charged a currency conversion fee.
- Due to tax regulations, payment via the “friends and family” or “e-check” options are no longer available.
Our bank transfer, account credit and check (US only) payment options are still available.
In order to comply with United States tax regulations, it’s necessary for Label Engine LLC to obtain a completed tax form for every corporation or individual that we make payment to.
- For US based clients, this form is an IRS Form W-9 – Request for Taxpayer Identification Number and Certification.
- For international clients, this form is an IRS Form W-8BEN or W-8BEN-E – Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting.
For customers requesting payments via bank transfer or check, you will need to fill out the appropriate tax form:
- Once you submit your payment request you will be emailed an electronic copy of the form to be completed and signed.
- Once we have received your signed form, your payment request will be processed.
- If you make changes to the name of the individual or corporation that payment is made to you must provide a new tax form.
- If you require assistance in completing the form or require a form in a different language please contact us.
If you wish to begin downloading and completing the required forms before you make a payment request you can visit the Tax Forms page under Settings once you login at https://label-engine.com/tax_forms.php
We are looking forward to the efficiency and consistency these updates will provide our clients and thank you for your co-operation as we make these changes.
If you have any questions or concerns about this updated process please feel free to email us.