Go to Kami and open your document you want your students to work on together. Then click the share button at the top right.
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Here you will get the sharing link at the top half of the settings, make sure that Editor is selected so everyone can edit on the document.
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To start go to your Schoology course you want your collaborative assignment in, then select the Add Materials button at the top.
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In the dropdown you will see an option to Add File/Link/External Tool select this option.

You will then be prompted to select between File | Link | External Tool make sure to select Link as your option as seen below

This will then prompt you to add your Kami Sharing link and give a title to your assignment. Once you filled those out click Add to finish.

Your assignment will now look like this in your list:

On a collaborative document you and your students have access to the Collaborators button found next to the undo at the top of the document.
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When selected it opens the Collaborators section on the right.

Each user can hide another users annotations by selecting them in the Collaborators section, as seen below the annotation that Gale made is now hidden on the document.
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There is also a Hide All button at the bottom of the Collaborator section, this helps if you want to only see your own annotations or specific peoples annotations in a big class

As a teacher you have the unique option when hovering over a students annotation to delete it. It will prompt you with a warning that you are deleting someone else's annotation.
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Students aren't able to do this, the only thing students are able to do to other peoples annotations is view who made them. They are unable to edit them in any way.