As an employer, How should I categorize my upwork payments for Bookkeeping?

[AveryO]

Hi Dan, 

Our team is not familiar with these processes. Just the same, I would also recommend that you consult a local accountant for more information on how you can do this properly.

Hopefully, other Community members can chime in on this thread!

[mtngigi]

If you hire a freelancer, you are not an employer. Independent freelancers are contractors, not employees. That said, I believe there are other hiring models on Upwork that I'm not familiar with that may fall under a different category.

[3bbad481]

I am wondering how to categorize it too. Also you are required to send a 1099 to contractors. Here it says employers and upwork don't send a 1099:

https://support.upwork.com/hc/en-us/articles/211063958-Report-Income-from-Upwork

However my understanding is it is a federal requirement for employers to send the 1099.

[prestonhunter]

re: "However my understanding is it is a federal requirement for employers to send the 1099."

Upwork clients are not employers.

Upwork freelancers are not employees.

[35c66eaf]

So it looks like you received feedback on how your questions was wrong but yet you still just need to know what category tab to hit in your bookkeeping right? That what I was searching for and here is the answer I got, hopefully anyone else looking will benefit from this response. You can categorize this payment as Payment to contractors, even if you did not pay directly your sub-contractors. In fact, Upwork is your sub-contractor.