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.
When you create a contract, we will use the information you provided us to automatically generate different forms.
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 the 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.
What tax forms can I collect in Deel?
1. 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 on the IRS website and you can learn how to fill in W-9 form in Deel here.
2. 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 on the IRS website and you can learn how to fill in W-8BEN and W-8BEN-E form here.
Did you submit a W-8 BEN and don't see your 1099?
That's expected! You're all set and don't need to do anything further.
Note: Payments to independent contractors were reported with Form 1099-MISC until the IRS introduced 1099-NEC for tax reporting in 2020.
3. 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.
Which tax form should I fill in?
US citizens and taxpayers
If you confirm that you are a US citizen and taxpayer, we'll 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:
Non-US clients
Are you working for a non-US client and don't see your 1099?
That's ok. You can still report your self-employment income on your Schedule C, without a 1099. Please see the full details here.
If you need additional assistance with tax forms, contact us 24/7 and we’ll be happy to help you!
Disclaimer: This article is for informational purposes only and is not intended as tax advice. IRS regulations can be subject to change, so check for updates on www.irs.gov. Consult an accountant or tax advisor for help with tax laws.