Hi I have users that are submitting content that can be rated by the community. The top users, based on the popularity of their contributions, accumulate points in their account that (for now at least) translate to a cash amount. After a certain cash threshold users can 'cash out' and get paid the amount via Paypal. This will eventually turn into a reward system from partners, but for now and the foreseeable future it will be cash.
Do I need to do anything regarding taxes, or can the responsibility be on the users to report their earnings as part of their regular income statement and deal with it themselves?
Thanks in advance!
How about this, what if it's not cash but Amazon gift cards or some equivalent. Would that make a difference?