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Do affiliate networks pay for sales tax too?

Discussion in 'Affiliate Programs' started by creativepotion, Aug 13, 2012.

  1. creativepotion

    creativepotion Regular Member

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    I am new to affiliate marketing and was wondering if they pay extra for tax?

    For example, I am interested in promoting one of the offers; $10 per sign up.
    And if my state's sales tax is around 7%.

    So will they be paying me my sales + 7% (so I can pass it on to IRS),
    or will they be paying me a solid $10 (7% inclusive, meaning I am actually making only $9.30)

    Thanks
     
  2. ryanmercer

    ryanmercer Regular Member

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    Occupation:
    Sr. ECO Import Agent
    Location:
    Speedway, IN
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    You'll be paying tax yourself as an independent contractor. 7% *laughs*. Good luck, I suggest you go read up on income tax.
     
  3. creativepotion

    creativepotion Regular Member

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    What are you trying to say here?
    I understand it involves both sales tax and income tax, and usually, sales tax are paid by 'biller' and pass it down to IRS,
    and income tax is quite straight forward, whatever I make (minus expense)?
     
  4. creativepotion

    creativepotion Regular Member

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    bumping this. thanks in advance
     
  5. seany

    seany Regular Member

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    he is saying that 7% is very low, depending on what you earn you can pay up to 40% in UK.