US clients and their contractors will have the opportunity to manage Tax forms (and file some) directly through Deel. This will speed up the whole process and help you have an overview of all the forms you and your contractors need.
What is the Tax feature on Deel?
For our US users, we created an easy way to collect data and generate tax forms. When you create a contract, we will use the information you provided us to automatically generate the following forms:
W-9 Request for Taxpayer Identification Number and Certification
The purpose of the W-9 Form is to collect information from vendors US clients hire as independent contractors and freelancers. You can learn more about Form W-9 here.
W-8 (W-8BEN and W-8BEN-E) Certificate of Foreign Status
The purpose of the W-8 form is to provide foreigners with an exemption from specified US information return reporting and backup withholding regulations. You can learn more about Form W-8 here.
1099-NEC Non-employee Compensation
The purpose of the Form 1099-NEC is to report non-employee compensation. This form needs to be submitted to the IRS. Thanks to our tax partners, you can now file this form to IRS, directly from Deel.
Note: Payments to independent contractors were reported with Form 1099-MISC until the IRS introduced 1099-NEC for tax reporting in 2020.
Who is the Tax Feature for?
Clients from the US and their contractors (located in the US or globally) will greatly benefit from this feature. We will automatically ask respective users to fill in the necessary information we need in order to generate necessary forms. Moreover, our clients can file 1099 Forms to the IRS directly from Deel.
Why do I need to file tax forms?
Tax forms are a vital part of compliance and a necessary step to run a risk-free business. W9 and W8 forms need to be collected and kept as proof in case of the inspection from the IRS. You can store your collected forms on Deel and access them at any time.
How can I use the tax feature on Deel?
We strive to streamline all the tasks on Deel, including the collection of some tax forms.
US citizens and taxpayers
Next time you log in to Deel, you will be prompted to confirm that you are a US citizen and taxpayer.
If you see this screen but are not from the US, please change your details by clicking on the link below the button or go to the account settings.
From there you will be taken to a screen to collect your information for W9 form. The collected information will help us generate a 1099-NEC for you.
Non-US contractors working for US-based clients
If you are a contractor outside of the US but have contracts with US-based clients, we will ask you to confirm you are not a US resident. You will see the following screen:
From there you will be taken to a screen to collect your information for W8-BEN(E) form. You can manage your tax forms from the Tax tab on the dashboard under Taxes section.
Taxes section for clients
Taxes section for contractors
We are here to help you in any way we can during this process. If you have a question, let us know via website chat!
Please keep in mind that Deel is not allowed to give tax advice.