There is an update regarding the implementation of withholding taxes on commissions paid out to agents. Starting January, 2024, we will be adhering to standard legal tax requirements by implementing this change. In this blog post, we will explain the reasons behind this change and address any concerns you may have.
Withholding Tax is the money that an organization withholds from agent commission/earning and sends directly to the government. Withholding tax is either 5% for individuals or 10% for companies. A percentage of an agent’s compensation that is not included in their paycheck and is sent straight to the federal, state, and local tax authorities and other appropriate tax authorities is known as withholding.
The Need for Compliance
Due to recent changes in tax regulations, we now have to emphasize our commitment to aligning our business practices with legal obligations. We will remit this payment to the relevant tax authorities at the end of each year and you can use the amount withheld to offset your tax payments to the government. Complying with tax regulations is crucial for our business and yours. We understand that navigating tax compliance can be complex, and we are here to support you through this transition.
Making Life Possible
Making life possible for you and your business is still our goal and we will help ensure a smooth transition regarding the implementation of withholding taxes on commissions. We want to reassure you of our commitment to providing the best service and supporting your success. While this change may require an adjustment, we are confident that it will not adversely affect the strong partnership we have built with our agents.
You probably have more questions or concerns regarding this change. We encourage you to reach out to our dedicated support team at service@paga.com. Our team is well-equipped to provide you with the necessary assistance and address any queries you may have. We value your feedback and are committed to making this transition as seamless as possible for you.
Thank you for your understanding and cooperation as we work together to navigate this transition.
