If you're an External Worker whom the Internal Revenue Service (IRS) defines as a “U.S. Person” and earn money working with your client through Worksome, you need to report this income on your tax return.
For W2s (On payroll)
If the work you do for your client classifies you as an employee, you and your client will be using Worksome's payroll solution. When you use the Worksome's payroll solution, our staffing provider will be the employer, handle all of the withholding and payment of taxes, and provide a Form W-2.
For 1099s (Independent contractors)
As Worksome only serves as the intermediary, we'll only provide a 1099-K form if you have over $20,000 in revenue and over 200 transactions on the platform. If you did not meet both of these requirements, you won’t receive a 1099 form. However, you still have to report your income when filing your taxes.
We've made it easy for you to get an overview over your annual income, which you can find in the 'Bills'-section on the home page of your Worksome account. Here you can find all your annual bills to be used when filing your income on your tax forms. Be sure to also note any expenses you paid associated with being able to offer the services you provide.
This article does not address all the tax issues for External Workers and it cannot and should not be relied upon as legal or tax advice. Readers are strongly encouraged to seek tax advice based on their particular circumstances from an independent tax advisor.