Apr 1, 2020 11:49:00 AM by Rick F
Hi, what is Upwork doing to try to make it so you qualify under the PPP in the category of "independent contractors"? If you can make it so you qualify universally so I don't need to validate each contractor (some of mine are international) that would be a huge win.
Apr 1, 2020 01:21:03 PM by Peter A
I am also wondering the same thing. Do Upwork freelancers count as "contractors" for the purposes of the PPP?
They receive a 1099 from Upwork, not from our company, so I'm not sure if it counts?
Apr 1, 2020 01:31:22 PM by Rick F
And.. they are often international. I think Upwork should take some action here to get special approval. Would help you (Upwork) more than us (small businesses).
Thanks!
Apr 1, 2020 03:37:57 PM by Valeria K
Hi Rick and Peter,
Upwork is committed to helping users in these troubling and uncertain times. Eligibility for loans under the Paycheck Protection Program are determined by the applicant's financial or lending institution. To the extent that payments to independent contractors are permitted payments under the loans, we note that clients that use Upwork still do pay their contractors (not Upwork), but pay through our escrow service.
If a 1099-Misc form is required, that would be in the name of the client, not Upwork (though 1099-Misc forms are generally not required because of the 1099-K program). It appears to us that independent contractors paid through Upwork are equally eligible as other independent contractors, and should they SBA reach out to us with respect to any individual loan application we would certainly explain that payments are made by the client to the freelancer.
More information on how to apply for a loan under the Paycheck Protection Program and eligibility can be found on the U.S. Small Business Administration website here: https://www.sba.gov/funding-
Apr 2, 2020 11:15:40 AM by Jesse F
Thank you for the reply Upwork. I have found that I am able to submit 1099's to my bank in order to get our contractors covered - however I don't see where I can get that information in my account. The UpWork team is essential to us being in business, and in fact this could help us provide more work through this portal. Are there any ways to get the 1099 forms for our teams or equivilant so that we can submit to our financial instutions?
Apr 2, 2020 01:53:40 PM by Joseph Randy M
So, is it confirmed that a 1099 is required when submitting the app to the financial institution? Or, as Upwork States above, will Upwork's stance be enough?
Apr 2, 2020 02:42:00 PM by Jesse F
Valeria - thank you, much appreciated! We don't spend a ton, but around $40k a year, so that would be helpful through this.
To others - not confirmed yet, however reach out to your bank. The one I'm speaking with is allowing 1099 in the initial form, however we'll see if it goes through underwriting. You should reach out to your commercial lender at your bank to get more information as it seems to vary.
Apr 2, 2020 05:02:31 PM by Vasilisa K
Hi Valeria,
Thank you very much for some of the clarifications provided here. Can an agent also reach out to me to clarify some of the similar questions, or can you please post this information here?
Thank you very much,
Vasilisa
Apr 2, 2020 08:26:54 PM by Avery O
Hi Vasilisa,
Let me go ahead and check on this and I'll come back here once I have more information.
Apr 2, 2020 08:47:18 PM by Peter A
Same as above, 30% of our workforce is hired through upwork. Any help in ensuring PPP approval including those costs as payroll would be appreciated by all your client customers.
Apr 6, 2020 12:21:04 AM by Kyle S
Hi Upwork Support,
Please help! I contacted customer support and was told to use the billings by timesheet- whichh is not AT ALL what is needed by the Government. Can you please help me with an exception as well? TIme is of the essence.
Apr 6, 2020 01:38:06 AM by Vladimir G
Hi Kyle,
Please note that the conversation on this thread isn't related to reporting earnings as a freelancer.
Note that freelancers working on Upwork will not receive 1099-MISC form. Qualifying freelancers will receive 1099-K form. You can find more information about it and learn whether you qualify to receive the form here. I'd also strongly suggest checking the recently hosted "Filing Taxes as a Freelancer" webinar you can access here.
Apr 3, 2020 04:41:03 AM by Thomas M
Valeria;
Thanks for trying to help in this difficult time. But the general link about contract (1099) employees and W-2 employees that you provide is probably well-understood to all who use Upwork for freelance staff.
With the PPP loan, a key element of securing the loan through a local bank is evidence of having 1099 workers (such would be the case if any business contracted directly with the worker). The purpose of the loan is to cover payroll. Because Upwork handles the 1099 and operates as a broker service to its clients, the transaction report that a business can download from Upwork is a service invoice and not the 1099 documents that are needed for PPP. We need the form for each worker from 2019 and first 2 months of 2020.
Apr 3, 2020 05:29:12 AM by Peter A
Apr 20, 2020 07:35:14 PM by Sundar K
Hi @Valeria K ,
I am in the same boat. I have been spending around $20K / month on upwork since Oct 2019. I was not really sure how to apply without the 1099, so I did not apply yet. but now that the Congress is replenishing PPPs, can you please help me out on how to show 1099 equivalent for the PPP process.
Sundar.