Applying for Cash Out on Caffeine

While we work hard to make all aspects of using Caffeine simple, any time there’s money involved there are tax rules and regulations that need to be followed.  We have selected a world class payments platform, Tipalti, to power monetization for Caffeine’s global community. Tipalti provides an Online Wizard to simplify the process of entering tax registration and payment details.  You are required to maintain updated and accurate tax and payment information at all times.

Please go to the “Gold and Credits” page of Settings to access and use the Online Wizard.  Tipalti will review your information and confirm you are legally permitted to receive payments from Caffeine. For your security, all of your information must be entered in a single session before it is saved.

DISCLAIMER: NEITHER CAFFEINE NOR TIPALTI CAN PROVIDE TAX ADVICE. Any tax-related information posted on or provided by Caffeine is not intended to be, and should not be construed as, tax, legal or investment advice. If you have questions about tax-related issues, please consult with a tax professional.

Who is eligible for payments?

If you currently have enough Credits where your cashout balance is at least $100, you can apply to become eligible for payments from Caffeine. Caffeine users are not considered “payable” until all electronic or manual tax forms, explanations and additional documents (if required) have been submitted and approved.  If you qualify for payments, you can still redeem your Credits for Gold to have fun with props on Caffeine.

How safe is my information?

Tipalti secures your data with enterprise-grade security, ensuring your payment information is maintained at the highest security level available. Caffeine doesn’t access any sensitive information from this registration process until we are fulfilling our tax reporting obligations to you and the U.S. government.

What types of payment methods are available?

Caffeine has decided to give you the choice of payout methods.  Each method has its own delivery speed and disclosed cost to you, so you choose what works best for you.  We currently offer PayPal, ACH (U.S.), Wire Transfer (U.S.), International ACH/e-check, Paper Checks, and Wire Transfers (global), but your identified banking country may result in more limited options.

What types of currencies are available?

Most major currencies are available. After you select your banking country in the Online Wizard, it will show the applicable currency, which is usually the local currency, if available.

A 2.5% Foreign Exchange Fee will also be deducted by Tipalti if you are outside of the U.S.

How long is the processing time?

Once your registration is approved, each cash out request is reviewed by Caffeine to make sure you’ve followed the Community Guidelines and Terms of Service as required. This process may take 7-10 days, depending on request volume at the time. Our goal is to make this process even faster for trusted users on the platform.

After Caffeine releases the payout, it will take additional time for the money to get to you. This timing depends on your chosen payout method and banking country.  The average processing time (depending on banking country) for each payout method is currently:

• Domestic ACH: Up to 3 business days
• International ACH/e-check or Wire Transfer: 3–7 business days
• Paper Checks: 3-7 business days
• PayPal: Within 2-3 business days

Please note that there are some circumstances that could further delay the payout. For example, many banking systems don’t process transactions on weekends or holidays. Also, if your payout from Caffeine is completed between Friday and Sunday, it might not be processed until the next week.

What kind of currencies are available for each country and payment method?

Available currency options will be presented when first you setup your account using Tipalti’s Online Wizard.  

What are the fees for the payments?

Caffeine does not charge any fees for payments.  However, Tipalti charges fees on each transaction, deducting them from your payout. These fees are disclosed when you pick your payment method.  The current schedule of fees is as follows:

What other fees could I incur?

Please be careful to fill out the registration forms correctly.  Fees incurred by Caffeine for failed transactions due to incorrect payment information will be deducted from your account balance in addition to the regular transaction fees.

If any of the circumstances below occur and a payment sent through Tipalti is rejected or taken under compliance review, a rejection or review fee may be charged to Caffeine by Tipalti, and your account balance shall be debited by the full amount of any such fee(s):

• A user provides any incorrect or invalid payee details including but not limited to SWIFT number, routing number, bank account number, PayPal account information, and/or check information
• A payee’s bank and/or PayPal rejects any payment due to reasons specific to the payee’s geographic region. For international accounts, we strongly recommend that you reach out to your bank and/or Paypal to ensure your account is able to receive international payments in your selected payment method and that your account is in good standing.
• A payee triggers an Anti-Money Laundering (AML) and/or Office of Foreign Assets Control (OFAC) review
• Any reason outside of the control of Caffeine

Miscellaneous Fee Schedule

TAXES

Why do I have to take the online tax interview?

Caffeine is required by United States tax laws to collect certain tax-related information from you when making a reportable payment to you, because you may have to pay taxes on your earnings.

If you do not provide us with a valid tax identification number (TIN) or any other required information, your payments may be subject to 24% (effective January 1, 2018) federal income tax backup withholding.  Backup withholding is not a failure to pay you; it is an advance tax payment.  Also, if you do not provide us with this information, you may be subject to a $50 penalty imposed by the Internal Revenue Service under section 6723.

Please note it is your responsibility to understand and comply with any and all applicable tax laws. For specific information regarding U.S. tax requirements, please visit the IRS website or consult with a tax professional.

Tax Questionnaire Flow

During the signup process, you can complete the Online Wizard’s tax form questionnaire to determine which tax form you have to submit. You can access the Online Wizard on the Gold & Credits page.  The Online Wizard suggests the relevant tax form based on your answers to the questions below.

Please note that answers are not saved in the system. Therefore, if you exit the Online Wizard before completion, you will have to restart the Online Wizard.

Electronic Tax Forms

Tax forms are completed using the Online Wizard. The information you enter on the tax form is cross-checked with the type of tax form. For example, if you complete a W-8BEN or W-8BEN-E form, the system checks that your permanent resident address, mailing address, country and phone number are non-U.S.

W-9

This form is used by most of Caffeine’s users within the U.S.  Complete the W-9 form using the Online Wizard if you are incorporated in the U.S. or an individual and one of the following applies:

• You are a U.S. citizen.
• You are a resident of the U.S.
• You have dual citizenship (with one citizenship being U.S.)
• You are subject to taxation as a U.S. citizen.
• You were born in the U.S. and have not formally renounced U.S. citizenship.

W-8BEN

This form is used by most of Caffeine’s individual users outside of the U.S.  Complete the W-8BEN form using the Online Wizard if you are an individual who:

• Is NOT A U.S. citizen or a resident of the U.S.

• Has no income effectively connected with the conduct of trade or business within the U.S.
• Is not acting as an “Intermediary”
• Is not receiving compensation for personal services performed in the U.S. for which you are claiming a treaty benefit

W-8BEN-E

Non-U.S. companies that have U.S.-sourced income are required to complete the W-8BEN-E form using the Online Wizard.

W-8ECI

If you are a non-U.S. individual performing services in the U.S., you generally should manually upload the W-8ECI form.  The difference between the W-8BEN and the W-8ECI is the W-BEN is not subject to U.S. taxes and withholdings and the W-8ECI effectively states that you are subject to U.S. tax and not foreign tax.  However, in certain cases you may be below the statutory or treaty-based thresholds that allow for different U.S. tax treatment, in which case you would file Form 8233, described below.

8233

If you are receiving compensation for personal services performed in the U.S. for which you are claiming a treaty benefit, you should manually upload the 8233 form via the Online Wizard.

W-8IMY

If it applies to you, you should manually upload the W-8IMY form via the Online Wizard.

W-8EXP

If it applies to you, you should manually upload the W-8EXP form via the Online Wizard.

Some Tax Forms Will Expire

If a tax form can expire, you will be notified via email 7 days before it expires, and again after it expires.  Please note that if your circumstances change (e.g., you become a U.S. citizen), even if a form has not expired, you may be obligated to update your form or select a different form that matches your changed circumstances.

• W-9 - never expires
• W-8IMY - never expires
• 8233 - expires 12 months from signature.
• W-8BEN - current year plus next three calendar years
• W-8BEN-E - current year plus next three calendar years
• W-8ECI - current year plus next three calendar years
• W-8EXP - the current year plus next three calendar years

Additional Documents

Depending on the type of U.S. tax form and information you entered, you may be required to provide additional documents for verification and/or an explanation as to why certain information was entered. Here’s an example of the type of documentation you might be asked to provide:

Once additional documents are approved by Caffeine, you can view these documents in the Gold & Credits page. While you cannot remove uploaded documents, you can replace them if you upload another document of the same type; the previously uploaded document is replaced with the new document once approved.
If you have provided an explanation, Caffeine will be able to review the explanation and make a decision whether you are eligible for cashout.  If not, Caffeine will provide a reason for rejection via email. You may appeal the decision via Caffeine Help, but the final decision of Caffeine is final and incontestable. 

What if I don’t have a tax I.D.?

If you are a U.S. business or individual, or a non-U.S. business with U.S. Activities, as described elsewhere in this FAQ, and you do not have a tax I.D. such as a Taxpayer Identification Number (TIN) or Social Security Number, you’ll need to acquire one to get paid by Caffeine. We suggest that you obtain your TIN as soon as possible. Please note that the process of obtaining a TIN may take several weeks. You can visit the Internal Revenue Service (IRS) website for more information on obtaining a U.S. TIN.

Am I subject to U.S. Tax withholdings (non-U.S. residents)?

You are not subject to U.S. Tax withholding for compensation derived from performing services outside of the U.S. if you are not a U.S. resident or citizen.  If you performed services on Caffeine while being physically present in the U.S., you may be able to avoid U.S. Tax withholdings if you are a resident of a country with a tax treaty.  If you have not performed services for Caffeine in the U.S. withholding rates are not applicable for W-8BEN and W-8BEN-E tax forms. For specific information regarding U.S. tax requirements, please visit the IRS website U.S. Tax Withholding on Payments to Foreign Persons.

What should I do if I cannot continue to the next screen or am having trouble filling out a form?

Please submit a ticket to Caffeine Help.  While they cannot give tax advice, Caffeine’s customer service team is readily available to help you with any questions or issues you may have during the registration/onboarding process. We will do our best to help you to register/onboard to receive your payments.

When will I get my annual IRS Form 1099-MISC or Form 1042-S?

Your Form 1099-MISC is available on or before January 31 of the following calendar year via snail mail, as the form will be postmarked on or before January 31 and will be sent to the physical address that you have provided in your Caffeine onboarding process.  If you used the ACH or check payment methods and your full amount of payments for the year totals less than $600 you will not receive a 1099-MISC.  If you took your payments from PayPal you likely will not receive anything from them unless you surpass $20,000 made on their platform, if that is the case you will receive a 1099-K from PayPal.

Your Form 1042-S is available on or before March 15 of the following calendar year via snail mail as the form will be postmarked on or before March 15 and will be sent to the physical address that you have provided in your Caffeine onboarding process.