Not Providing a Ssn/Itin # on Agreement

[Liquid Sky]

Why does PC make it an "option" to provide a SSN or ITIN # when completing a new consultant agreement? I know there's verbage about withholding 30% of the commission for tax purposes if someone does not provide that info.

Isn't it a "standard" in the US for all employers to require SSN's or ITIN's to make sure they are not hiring illegal immigrants? I have a new recruit who did not want to provide that info. I let her know how PC will withhold monies for taxes and she said she'd rather go that route b/c she's "very cautious about giving out that info".

All I see are RED FLAGS. The last thing I want to do is sign and train a new consultant and find down the road they are not legal and whatever "mess" that may come out of that. I just want to spend my time working with "legit" team members.

Thoughts? Opinions? Experiences? TIA!

 

[chefann]

Could you have her complete the agreement online so that you don't have a hard copy with the number? That may be what she's nervous about. But since the online agreement goes directly to HO to be processed, then the number won't be on paper that could be lost.I'd also point out the verbage about withholding commission to her. 30% is a lot for her to miss out on. And although I haven't had to work with this situation, I imagine that tax time is more difficult if HO can't print SSN on the 1099.

 

[BethCooks4U]

Why does PC make it an "option" to provide a SSN or ITIN # when completing a new consultant agreement? I know there's verbage about withholding 30% of the commission for tax purposes if someone does not provide that info.

Isn't it a "standard" in the US for all employers to require SSN's or ITIN's to make sure they are not hiring illegal immigrants? I have a new recruit who did not want to provide that info. I let her know how PC will withhold monies for taxes and she said she'd rather go that route b/c she's "very cautious about giving out that info".

All I see are RED FLAGS. The last thing I want to do is sign and train a new consultant and find down the road they are not legal and whatever "mess" that may come out of that. I just want to spend my time working with "legit" team members.

Thoughts? Opinions? Experiences? TIA!

Pampered Chef is not our employer - we are independent contractors. I would have her call HO and talk to someone in finance so they can explain how and why and her options. And since you have such concerns I would also suggest you call HO too and get your concerns answered.

 

[Nanisu]

Call HO, ask for finance and hand her the phone. Good Grief.

 

[pamperedlinda]

That's ridiculous, she isn't interested and it's an excuse. I'd move on and forget her if I were you.

 

[jayswife07]

I know a LOT of people, including one of my sisters and my Mom who are VERY weary about giving anyone their social. I agree with the others on contacting HO. I have no doubt that they have dealt with this before. I have had outside sales that called in their orders during a party and requested to talk to me because they didn't want the host to have their CC info. (they would rather give it to a stranger). People are funny that way, especially with that type of information.

 

[Jolie_Paradoxe]

I lost a recruit for the same info. She was excited, had all sorts of plans and started filling out the agreement. When I got it, I noticed she did not include her SSN....when we spoke about it she said she did not want to mess with taxes, did not want to alter her tax bracket and that she would not sign up.

We went round and round with options, and the bottom line was no, thank you. If HO holds 30% commission and allows us to go online and skip the SSN....I may be able to revisit the subject! lol

 

[chefann]

I lost a recruit for the same info. She was excited, had all sorts of plans and started filling out the agreement. When I got it, I noticed she did not include her SSN....when we spoke about it she said she did not want to mess with taxes, did not want to alter her tax bracket and that she would not sign up.

In practice, she'd probably have enough business deductions in her first year that she'd actually end up in a LOWER tax bracket.

 

[Sheila]

If you have ever dealt with identity theft or know someone who has, you would be a little more cautious too ... but the Consultant Agreement is not like you giving your Social Security Number to Blockbuster to open an account. Good grief! Even thought it's technically NOT a job application, it's along the same lines. Maybe that would make more sense to her if you explained it that way (without the Blockbuster sarcasm of course).

 

[wadesgirl]

I think that it also keeps people from signing up more than once (you know, to keep yourself active as a director or such). You can change the name of a consultant but you cannot change their social security number.

 

[Jolie_Paradoxe]

In practice, she'd probably have enough business deductions in her first year that she'd actually end up in a LOWER tax bracket.

That's exactly what I told her. She also has a cpa friend who does her taxes, so the headache of filing should not have been an issue. Then I asked her if she was receiving any unemployment or disability, to which she stated no....she works one FT job and a PT job. I was also direct and asked if there was a question of legality! lol I covered all sorts of angles, but she was adamant that she would not sign up if an SSN was required.

It remained a mystery for me....who knows, maybe she's on the run! He He...just kidding. I truly never learned more other than her fear of higher tax bracket...though I did cover that biz deductions could only help her current situation.