As an employer, you’re required to provide a 1099-MISC form to any freelancer or contractor you pay $600 or more in a calendar year. You don’t have to provide a 1099-MISC to corporations or LLCs.
If you use an online platform like Upwork to pay your freelancers, the platform will typically take care of issuing 1099s for you. For example, if you paid a total of $600 or more to a single freelancer through UpWork last year, UpWork will send them a 1099-MISC form by January 31st.
The same is true for other online platforms like Fiverr and PeoplePerHour.
If you use PayPal to pay your freelancers, PayPal will also typically take care of issuing 1099s for you. For example, if you paid a total of $600 or more to a single freelancer through PayPal last year, PayPal will send them a 1099-MISC form by January 31st.
So in most cases, you don’t have to worry about issuing 1099s for payments made through online platforms like Upwork, Fiverr, PeoplePerHour, or PayPal. However, there are a few exceptions:
PRO TIP: 1099s are only required for payments made to contractors, not to employees. Upwork does not issue 1099s.
If you made payments totaling $600 or more to multiple freelancers through UpWork last year: In this case, UpWork will not issue 1099s for you.
Instead, you’ll need to issue 1099s yourself. Here’s how:
- Get the necessary information from your freelancers:
In order to issue a 1099-MISC form, you’ll need the following information from each of your freelancers:
- Name
- Address (including city, state, and ZIP code)
- Social Security Number or Employer Identification Number (EIN)
- Obtain the necessary forms from the IRS:
You can obtain the necessary forms by visiting the IRS website or by calling the IRS at 1-800-829-3676.
- Fill out and file the forms with the IRS:
Once you have the necessary information and forms from your freelancers and the IRS, you can fill out and file the forms with the IRS.
In most cases, you won’t have to worry about issuing 1099s for payments made through online platforms like UpWork, Fiverr, PeoplePerHour, or PayPal. However, there are a few exceptions:
If you made payments totaling $600 or more to multiple freelancers through UpWork last year: In this case, UpWork will not issue 1099s for you. Instead, you’ll need to issue 1099s yourself.
7 Related Question Answers Found
As a freelancer, you are responsible for paying your own taxes. You are not an employee of the company that you contract with, so that company does not withhold taxes from your pay. Instead, you are responsible for setting aside money throughout the year to pay your taxes, and for filing a tax return at the end of the year.
There are many different types of independent contractors out there. You may have heard of some of them, such as Uber drivers, Airbnb hosts, or Amazon delivery drivers. But there are many others who provide services through online platforms, such as UpWork.
As a freelancer, you’re probably wondering whether or not you’ll receive a 1099 from UpWork. After all, you are considered an independent contractor, and not an employee of the company. The short answer is that it depends.
As a freelancer, you are responsible for your own taxes. This means that you will need to file a 1099 form for any payments you receive that total $600 or more in a year. You are also responsible for sending a 1099 to any freelancers you hire who total $600 or more in a year.
According to the IRS, if you are an American worker and you are paid $600 or more by a company for services you provide, the company is required to send you a 1099 form by January 31 of the following year. The 1099 form is used to report your annual income, and it is also used to report any independent contractors that the company hired during the year. If you are hired by a company through UpWork, the company is required to send you a 1099 form if they pay you $600 or more.
As a freelancer, you are responsible for paying your own taxes. This means that you will need to file a 1099 form for any payments you receive from clients during the tax year. UpWork is a popular website that helps connect freelancers with clients.
As an independent contractor, you’re responsible for paying your own taxes. This means that, come tax season, you’ll need to file a 1099 form for any freelancing work that you completed during the year. But what if you used a site like UpWork to find and complete your freelancing gigs?
