When you become a Graider, you are asked to sign an independent contractor (IC) agreement as well as fill out a federal W-9 form. Independent contractor income is compensation you receive for doing work or providing services as a self-employed individual, not as an employee. Your role as a Graider falls into this category.
As an IC, you will pay taxes a little differently than employees do. Employers are required to withhold federal income tax (as well as Social Security and Medicare taxes) from their employees' pay. However, as an IC, you are required to pay these taxes on your own if the annual payments you receive from all independent contractor sources totals over $400 in a calendar year. You can pay these taxes through either quarterly estimated tax payments or when you file your tax return at the end of the year.
If you’ve earned $600 or more in one calendar year by working as a Graider, The Graide Network will provide you with a Form 1099-MISC Form for your taxes by January 31st of the following calendar year.
If you've earned less than $600 with The Graide Network but more than $400 between all independent contractor sources, you can self-report your income and do not need a 1099-MISC.
If you've earned less than $400 between all independent contractor sources, you do not need to report that income on your taxes.
Below are some resources to help navigate your responsibilities as a self-employed individual:
Do you think you should have received a 1099-MISC? Contact us!