Q. Why are changes being made?
A. Members asked and we listened! We have now removed Social Security numbers (SSN) and Tax ID numbers as a requirement for the enrollment process. New members can now enroll and get our amazing products at the wholesale price without submitting their SSN or Tax ID number. This change will not affect any commissions, bonuses, or incentives at the time of enrollment and will allow our new members to build their businesses from day one.In compliance with U.S. tax laws, all members who have not submitted a valid SSN or Tax ID number will be subject to added withholdings. Our Finance and Tax department is also required to fill out and send a W-2 to members earning commissions at the close of every year. Once members earn commissions of $600 or make $5,000 or more in annual purchases, they will be subject to a 28 percent tax withholding until they submit their SSN or Tax ID number. This withholding will be deducted automatically from a member’s commissions but will not interrupt or modify a member’s compensation.
Q. What are the changes to member information requirements for enrollment?
A. The only change to the member information requirements will be that Social Security and Tax ID numbers will now be optional during enrollment.
Q. How will this affect a member’s upline?
A. Once a member has completed enrollment, all commissions, bonuses, and incentives will be treated the same for sponsors or upline members. All OGV and rank advancements will be treated the same as they have been in the past.
Q. How will members know when they have reached the $600 tax threshold?
A. Once members have earned $600 in commissions or made $5,000 or more in annual purchases, they will be prompted with a pop-up notification every time they log in to Virtual Office until a Social Security number is provided. This pop-up will require them to acknowledge the new withholdings that will be deducted from their commission check and then click “OK” before entering Virtual Office.We will also send out emails to those who are receiving the 28 percent withholding, as well as add communications on all commission checks and direct deposit notifications.
Q. When will this change take effect?
A. This change will take effect March 1, 2017.
Q. What will happen with the 28 percent tax withholdings?
A. The tax withholdings will be paid automatically to the IRS and may be partially refundable at the end of the fiscal year upon filing a tax return. This will be the responsibility of the Young Living member. No reimbursements or refunds will be granted through Young Living.
Q. How can I submit my Social Security or Tax ID number after I have completed my enrollment?
A. Members may submit their Social Security or Tax ID number at any time and update their member information on the Member Information tab on the My Profile page in Virtual Office.
Q. What if I already submitted my Social Security or Tax ID number when I enrolled prior to this change?
A. All Social Security and Tax ID numbers that have been submitted are saved on our secure server. Members can look on their My Profile page in Virtual Office to make sure that their information has been saved.
Q. Can I remove my Social Security or Tax ID number from Young Living’s records?
A. Members who have not earned up to $600 in commissions or made $5,000 or more in annual purchases may request to have their Social Security or Tax ID number removed from Young Living’s records by contacting firstname.lastname@example.org or Member Services. This will follow the same process that was maintained before this change.
Q. What happens once I submit my Social Security or Tax ID number after earning $600 in commissions?
A. Members who submit a valid Social Security or Tax ID number on their profile will no longer be subject to the 28 percent tax withholding.
Q. Can I submit my Social Security or Tax ID number before earning $600 in commissions?
A. Yes. Members can update their account and submit their Social Security or Tax ID number at any time.
Q. Will Young Living reimburse or refund withholdings that are deducted from my commissions between the time I earn more than $600 in commissions and submit my Social Security or Tax ID number?
A. No. All withholdings will be submitted to the IRS. Any reimbursements or refunds will need to be filed with the IRS.
Q. Will the $600 commission threshold reset at the beginning of each year?
A. Yes. The $600 commission threshold will reset on January 1 of each year.