Compensation of $600 USD or more within a calendar/tax year that is paid to non-employees who file taxes in the United States must be reported to the Internal Revenue Service (IRS).
As of 2024 filings for tax year 2023, businesses that file ten or more information returns in a calendar year -- including W-2s and 1099s -- must file those returns electronically.
TABLE OF CONTENTS
- Does Worksuite file 1099s for our freelancers?
- What are the stages of the process, and on what timeline?
- Does the freelancer need to submit Tax Information if they have completed a W-9?
- How much does 1099 filing cost?
- What type of 1099 filing do you submit?
- Who is the Payer on the 1099 filing?
- Which payments are included in 1099 filings?
- External Payments: Can you file a 1099 for payments made to freelancers outside of Worksuite?
- We want to exclude expense reimbursements from the total compensation filed.
- We've stopped working with the freelancer. Will you still file their 1099?
- When are 1099s filed?
- How are 1099s filed?
- How do our freelancers receive a copy?
- Freelancers are having trouble accessing Tax1099.com.
- May freelancers access their 1099 copies in their profile?
- Do we receive a copy?
- How can we contact you for additional information?
Does Worksuite file 1099s for our freelancers?
Yes, we do, for Global Pay customers who opt into our annual filing service.
In November each year, we invite your Finance/Tax contact to an onboarding workflow to guide them through each stage of the process, to include indicating your company's participation.
Please note that we do not export or share freelancers' securely stored tax filing information. Should you wish to file 1099s, please ensure you have collected, or have a means to collect, filing data.
What are the stages of the process, and on what timeline?
Once your company is opted in:
In late November, we request your freelancers to review and update as needed the Tax Information in their Worksuite profile.
In mid-December, we send a final reminder.
In January, we aggregate the filing data and prepare a preview file for your review and approval, addressing any gaps or discrepancies as needed.
No later than January 31, we generate the final data set and complete the filings to the IRS in bulk.
Through April 15 (and likely beyond), we support you and your freelancers with any corrected filings that may be required.
Does the freelancer need to submit Tax Information if they have completed a W-9?
Yes! We source the filing information from data fields in their Tax Information rather than parsing PDF documents.
As of September 1, 2023, a freelancer's invoices cannot be Scheduled for a pay run unless and until they have submitted tax filing information in their profile (details here).
Gaps in collected tax information will occur for freelancers who have not been paid since that date and/or who onboarded to Worksuite via a workflow in which the Tax Information stage was not included.
As of November 27, 2023, we have updated the Tax Information form to more closely align with Form W-9, which itself is now auto-generated from the Tax Info! (details here).
How much does 1099 filing cost?
For tax year 2023, each initial 1099 filing is $10.00 USD.
While we work with you and your freelancers to collect a complete and accurate set of filing data, some corrections are inevitable, at the cost of $20.00 USD per filing. Corrections include new filings after the deadline when tax filing information is newly received.
What type of 1099 filing do you submit?
We file Form 1099-NEC for all payments.
Who is the Payer on the 1099 filing?
During the opt-in workflow, you will have a chance to either review or add your company's tax information as you will be the Payer on the 1099.
[An exception would be if you are leveraging our EOR and AOR Services. For more info on this, see here and/or reach out to firstname.lastname@example.org.]
Which payments are included in 1099 filings?
We file for the following payments:
Earned by freelancers who file taxes in the United States (note that the freelancer may reside abroad)
Invoices are in the Processing status by the final pay run of the year, December 30, 2023
The sum of the freelancers’ invoices is $600 USD or more
At this time, we do not exclude 1099 filings based on the Federal Tax Classification indicated in the freelancer's Tax Information. Our 1099-NEC issuance for payments to a C- or S-Corp can serve as a reference for compensation and may be disregarded for IRS purposes.
External Payments: Can you file a 1099 for payments made to freelancers outside of Worksuite?
By default, Worksuite invoices for which you processed the associated payments off-platform are included in our filings.
To file for payments made externally and not represented by a Worksuite invoice, please upload your historical payments via bulk upload so they are represented by a Worksuite invoice and included in our filings.
While we charged an hourly rate in previous years for manually collating external payments with those in Worksuite, there is no longer an additional charge as your bulk-uploaded invoices will be included in our filings by default.
- If freelancers with external payments do not yet have a profile in Worksuite, you will need to create them (also available via bulk upload!) and invite them to submit their Tax Information.
- By default, the status of the invoices is either New or Approved as selected during bulk upload. In order to be included in filings, they must then be marked as Paid.
- The deadline to create invoices representing payments made outside of Worksuite is the end of the first week of the new year following the tax year.
For tax year 2023, the deadline is Friday, January 5, 2024. In order to ensure timely 1099 filings, we will not be able to accommodate any late exceptions.
We want to exclude expense reimbursements from the total compensation filed.
We can do this for you! Please ensure you are making use of the Line Items feature in your Worksuite invoices.
As long as Expense line items have been accurately categorized throughout the tax year, we can enable an optional feature in your environment to exclude these expenses from our 1099 filing.
Please see more detailed information here.
We've stopped working with the freelancer. Will you still file their 1099?
If you have archived a freelancer profile, this will not prevent Worksuite from filing their 1099 if they meet the criteria above.
Note that they will be unable to access Worksuite to review/update their Tax Information. They may reach out to us to report an access issue, in which case we will redirect them to you for guidance.
You may temporarily unarchive their profile so they may review their data, or you may choose to review and confirm the data with them on their behalf.
When are 1099s filed?
No later than January 31 of each year for the previous tax year.
How are 1099s filed?
We e-file with the IRS through our third-party partner, Tax1099.com.
How do our freelancers receive a copy?
In previous tax years, 1099 copies were attached to an email from our filing partner, Tax1099.com.
For tax year 2023, at the time of filing, an email is still sent from email@example.com to the freelancer's email address associated with their Worksuite profile.
Rather than including the attachment, this email solicits their consent for eDelivery of their 1099 copy, with instructions to access their platform to opt in or out.
In the absence of eDelivery consent, whether by opt out or non-response, 1099 copies will be mailed to the address in their Tax Information. Worksuite files no later than the deadline of January 31, though their copy may be received subsequently.
We also share all copies with you; see more below.
Freelancers are having trouble accessing Tax1099.com.
We've assembled this one-pager for assistance.
May freelancers access their 1099 copies in their profile?
No. Per the above, they access copies via Tax1099.com, and we also share all copies with you. See the next item.
Do we receive a copy?
After filings are completed, we will upload to Worksuite TaxOps a Form 1096 Summary and a bulk PDF of all filed copies. Please anticipate this to occur no later than the first week of February as the download may be queued by Tax1099.com for availability.
Once received, please download and distribute copies internally and to freelancers as needed.
How can we contact you for additional information?
Please email the Worksuite team at firstname.lastname@example.org, and we’ll be happy to assist you.
(Freelancers may reach us via the Support button on any page of Worksuite or by submitting a support request from our Help Center.)