Giftogram is a digital gift card platform that businesses use for incentives, rewards, and surveys, and we’re always looking for ways to make digital gift card rewards for employees, customers, and survey participants not just engaging and personal, but also simple, secure, and compliant.
That’s why we’re excited to introduce our W-9 Collection feature. It’s designed to help you gather the necessary tax information from your recipients as part of a secure, compliant digital gift card payout process when they hit the annual $2,000 gift threshold.
With W-9 Collection, you can spend less time chasing paperwork and more time focusing on what matters: creating memorable digital gift card experiences.
Key benefits: W-9 collection for streamlined, compliant digital gift card payouts and tax readiness
Giftogram’s W-9 Collection feature helps businesses that send digital gift card rewards build a secure, compliant payout process that’s ready for 1099 reporting.
- Streamlined tax readiness: We’ll prompt recipients to fill out a W-9 form once they’ve received $2,000 in digital gift card rewards or incentives within a calendar year, helping you prepare for potential 1099 issuance.
- Automated tracking: Recipients are automatically monitored at the campaign level—by Recipient ID (if provided) or email address—to make sure no one slips through the cracks when it comes to compliant, secure digital gift card payouts.
- Better peace of mind: The moment a recipient crosses the $2,000 threshold, they’ll be asked to complete a W-9 before redeeming any further digital gift card payouts, so you’ll have one less thing to worry about during tax time.
How Giftogram’s W-9 collection works
Giftogram’s W-9 Collection feature builds identity verification and tax form collection directly into your digital gift card payout workflow, so high-value recipients complete a W-9 before accessing additional rewards.
- Quick setup: Super Admins can enable W-9 Collection in campaign settings for your digital gift card rewards. Once active, recipients who reach $2,000 in rewards will be prompted to fill out their W-9.
- Easy redemption: When the $2,000 threshold is reached, recipients will complete the W-9 before redeeming their digital gift card payout, adding a simple, built-in compliance step to the redemption experience.
- Instant verification: We verify the recipient’s name and TIN against the IRS database to help ensure that high-value digital gift card payouts go to verified recipients in a compliant way.
- Simple reports: Download W-9 forms anytime for your records or 1099 preparation.
For more details on how to enable and set up W-9 Collection, check out our knowledge base article.
Who is this good for?
Giftogram’s W-9 Collection is ideal for organizations running high-value or enterprise-level digital gift card incentive campaigns—from customer promotions to loyalty, referrals, and survey rewards—where tax-ready, compliant payouts are critical.
- Consumer promotions: If you're running a sweepstakes, contest, or giveaway where winners receive gift cards above the $2,000 threshold, W-9 Collection ensures you remain tax-compliant while streamlining the redemption process.
- Loyalty programs: For businesses running customer loyalty programs that reward points with gift cards, W-9 Collection helps ensure that high-reward participants provide the necessary tax information without interrupting the user experience.
- Surveys and research campaigns: If your business offers incentives for survey completions or research participation, W-9 Collection helps ensure you’re ready to issue 1099s when participants hit the $2,000 threshold, even across ongoing or large survey programs using digital gift cards as rewards.
- Referral programs: When rewarding referrers with gift cards for bringing in new business or customers, W-9 Collection helps you keep track of compliance in case someone exceeds the $2,000 in rewards.
- High-value gift card rewards: This feature is particularly useful when you are offering significant rewards, such as for top-tier sales performers, affiliate marketers, or brand ambassadors, ensuring smooth compliance with minimal effort.
Important considerations for W-9 compliance
- Compliance is up to you: Enabling W-9 Collection helps you build a more secure, compliant digital gift card payout process, but it does not guarantee full tax compliance. We recommend consulting a qualified tax professional.
- Recipient participation: If a recipient does not complete their W-9, they can’t redeem their gift card reward. However, you may still be obligated to issue a 1099 if required by law.
- U.S. only: This feature is exclusively available for recipients located in the United States.
- Annual reset: Recipients only need to submit the form once per calendar year, regardless of how many campaigns they participate in.
About Giftogram
Giftogram is a digital gift card platform for business incentives and rewards, trusted by 22,000+ businesses and organizations to create meaningful gifting experiences and employee appreciation gestures.
Our platform is tailored for businesses—without any monthly fees—making it easier to run large or ongoing campaigns, from employee incentives to customer and survey rewards.
From customizing gift cards with your logo and message to giving recipients access to 140,000+ global, regional, and local brands, Giftogram makes it easy to give a gift they’ll love.
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