Jan 23, 2023 12:19:26 PM by Frederick R
My company has hired contractors through Upwork for a total of a few thousand. Do I need to issue a 1099 to Upwork? I doesn't look like I need to. Please advise.
Jan 23, 2023 01:43:43 PM by Arjay M
Hi Frederick,
Freelancers and businesses who are U.S. taxpayers and receive at least $20,000 in gross payments during the calendar year with 200 transactions or more will receive a Form 1099-K. Only those who have received at least $20,000 in gross payments and had at least 200 transactions on Upwork will receive a Form 1099-K. If you do not meet the minimum payment threshold, you will not receive any type of Form 1099 from us, although you are still required to report your income.
Jan 23, 2023 07:01:34 PM by Tiffany S
It's really frustrating how seldom it seems the mods here actually read the question before responding. The poster is a client, posting here in the client forum to find out whether as a client they need to ISSUE a 1099 to Upwork because they've paid you as a vendor.
Jan 24, 2023 08:35:24 AM by Frederick R
Jan 24, 2023 10:06:04 AM by NikolaS N
Hi Frederick,
Thank you for reaching out to us. You may want to check this help article for more information. Our customer support team is creating a personalized experience to better assist all Upwork platform users via the chatbot. The more you interact with the chatbot, the more custom responses you’ll receive.
Jan 23, 2023 02:01:52 PM by Preston H
re: "I doesn't look like I need to."
You are correct.
You don't need to issue 1099 to Upwork or to freelancers who you hire.
Jan 24, 2023 07:20:31 PM Edited Jan 25, 2023 03:04:25 AM by John P
Short and sweet: nope, you don't need to send a 1099 (and you don't need to, and shouldn't, request any information from the freelancer! Upwork does that for you).
Why? The correct help article about it is here:
https://support.upwork.com/hc/en-us/articles/211067918-Tax-Requirements
Specifically, see in the FAQ - "Why don’t I have to send a 1099-MISC, 1099-NEC, or 1099-K?"
Even if anyone DID transact more than $20,000 AND 200 transactions for tax year 2022 (or $600 in any transaction count for 2023), Upwork would generate the 1099-K as the appropriate form. You still don't have to do anything directly.