1099 Automation for Reward Programs
“With Incentivefox’s automated 1099 process, we don’t have to worry about missing a 1099 delivery, or the government’s fees connected to those, and we can focus on our business.” said Jean Backman at Woodland Cabinetry.
CHICAGO (PRWEB) May 14, 2019
Incentivefox, a Chicago-based marketing firm that partners with companies to create stronger, more engaged customer base and employee and partner relationships, has recently announced the release of their 1099 automation process.
Companies today are required to send 1099s to participants who have earned at least $600 in rewards. Currently the process of collecting the necessary information for both the company and the recipient is cumbersome. According to Entrepreneur.com, the minimum penalty for failing to issue a 1099 to someone that meets the requirements is $250. Total penalties for a calendar year may total as much as $500,000, depending on the size of the business.
With Incentivefox’s 1099 automation, companies no longer have to worry about gathering and storing social security numbers for every participant in their program. Additionally, the responsibility of issuing 1099s at the end of the year has been eliminated. Finally, due to the ability to identify every participant that earned over $600, resources are conserved by only issuing 1099 to those participants that have exceeded the requirement.
“We put countless hours of effort into researching which of our partners needed a 1099 each year from tracking funds, trying to find addresses, calling for addresses, and mailing,” said Jean Backman at Woodland Cabinetry. “With Incentivefox’s automated 1099 process, we don’t have to worry about missing a 1099 delivery, or the government’s fees connected to those, and we can focus on our business.”
When a participant enrolls in an Incentivefox reward program, their name, address, phone number and email address are collected. During enrollment, participants are informed that they will be required to provide their social security number if they earn at least $600. When a participant amasses at least $600, the reward that initiates the process is placed in a holding status. An automated email is sent to the participant requesting their social security number in order to trigger the release of their current reward and any future rewards that may follow. Encrypted social security numbers are stored separately from all other personal identifiable information.
Learn more about Incentivefox by visiting their website: https://www.incentivefox.com/