Gusto

[divyasasidharan]

Hello All,

For the purpose of obtaining 1099 for the client, my client requested that I needed to complete a Gusto form. What do you think?

[df602768]

Scam. 

[bobafett999 · Accepted solution]

Your buyer doesn't need any of those things. He pays you via middleman upwork.  They handle it for you.

You have to run from such buyers.

[patchworksvideo]

At best, it MIGHT be a client who's trying to do the right thing, and it's misguided attempt for them to get W-9 information under the incorrect assumption that they'll have to send you a 1099.

At worst, it's a scam.

A client on Upwork should NEVER be asking for SSN/EIN info, or trying to issue a 1099 for payments made through Upwork.  Upwork takes care of 1099 forms directly (and only when it's required – but keep in mind, the income is subject to income tax regardless of whether a 1099 is received!)

If the client has have doubts, point them to the instructions for Forms 1099 NEC and MISC, which specificailly say that payments made by payment cards and through third-party network transactions should NOT be reported on 1099-NEC/MISC, and should instead be reported by that third-party entity on 1099-K.  Upwork Escrow operates through third-party network transactions.  As a result, your clients don't have to (and MUST not) file 1099-NEC or MISC for transactions though Upwork.

Sources:

1099-NEC / MISC Instructions (see Form 1099-K notes)

Upwork - Tax Requirements (see FAQ - why don't I have to send a 1099?)