Providing W-9 information for tax purposes
All U.S. GigSalad members who receive booking payments to their bank account (via direct deposit or check) must provide us with their W-9 tax information so that we can issue the proper tax forms, if necessary.
⚠️ For tax year 2023, updated November 21, 2023: the IRS has announced a postponement of the $600 reporting threshold. For tax year 2023, GigSalad will adhere to the prior reporting threshold of $20,000 and more than 200 transactions. The vast majority of GigSalad members should not expect to receive a Form 1099-K document from us in early 2024.
The IRS requires third-party processors like GigSalad to collect a Taxpayer Identification Number (TIN) for every account holder. We collect this with a digital Form W-9. Then, at the end of the year, we will use a Form 1099-K to report to the IRS for every user that reached a certain earnings threshold. As a part of the American Rescue Plan law passed in 2021, Congress lowered the earnings threshold from $20,000 to $600. The IRS has described their plan to lower the threshold to $5000 for tax year 2024 and to enforce the $600 threshold at a later date.
We cannot generate a Form 1099-K to send to you, the taxpayer, or the IRS without first collecting your tax info via Form W-9. You will be prompted to provide it before being sent a booking payment. Be sure to add your tax info now to avoid payment delays!
How to submit a W-9
To make this process quick and easy (and to save some trees) we have built the W-9 form into the GigSalad control panel so you can fill out everything through your account.
To provide your tax info:
- Log in to your control panel and go to Account.
- Choose Tax Info from the menu.
- Complete all necessary information, read the certification details, and consent to electronic delivery.
- Click Submit Information.
🔒 Note: The information you provide through this form is encrypted upon submission and then stored in a secure data center. If you have any concerns about completing the form, please contact us.
Updating your W-9 info
If any of your tax details change, you can return to the Tax Info page in your Account to update and re-submit your W-9 at any time.
The previous information you provided will already be populated for your convenience, with the exception of your social security or employer identification number (your TIN). Because that information is often sensitive, we keep it hidden for security purposes. You will need to re-enter your TIN each time you update your W-9.
About Form 1099-K
At the start of each year we use the W-9 tax information we've collected to generate a Form 1099-K for each applicable GigSalad member from the previous calendar year. These forms will be sent directly to the IRS and an electronic copy will be provided to applicable members through their control panel.
Note: A Form 1099-K will only be issued to U.S. members that receive payments to their bank account via direct deposit or check. We will not be issuing Form 1099-K to members who receive payments via PayPal. PayPal will issue their own Form 1099-K to applicable PayPal users.
Frequently asked questions:
- What happens if I do not submit a W-9? Starting in 2024, if your GigSalad earnings reach $5000 and you have not provided us with your W-9, your payments may be delayed while we attempt to collect your tax information. If we still can't get the info or you provide us with incorrect info, your payments will be subject to a 24% backup withholding as required by the IRS.
- What if Form W-9 is not applicable to me? For some GigSalad members, such as certain U.S. residents who are foreign citizens, collecting W-9 tax information is not required. If you believe you are exempt from providing Form W-9 tax info to GigSalad then please contact us.
- Why was I never asked for this information before? In prior years, the IRS threshold for reporting was much higher. It only mattered for a small number of members who we would reach out to specifically. Since the threshold has been lowered, it is becoming applicable to essentially every member of GigSalad. Given the IRS guidelines, and assuming no future changes in the law, we ask for it from every potential payee as a best practice and an aspect of fraud prevention.
- Why are other platforms I use not asking for this information? You must provide your TIN to any service that sends you payments. If other platforms are not requiring it, then they likely use a third-party company to process payments. In those cases, that third-party company will collect your W-9 tax information instead and send the appropriate Form 1099-K documents. For example, PayPal or Stripe.