Apr 1, 2019 05:17:01 PM by Dan M
Apr 1, 2019 08:40:22 PM by Avery O
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!
Apr 1, 2019 09:38:21 PM by Virginia F
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.
Aug 14, 2020 02:05:50 PM by Ari V
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.
Aug 14, 2020 02:20:48 PM by Preston H
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.
Jan 4, 2021 09:02:41 PM by Jared J
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.