Manage taxes for a digital platform

It is critical that business owners correctly determine whether the individual providing services is an employee or independent contractor. For most types of workers, the common law rules for worker classification apply. For more information, review Independent contractor (self-employed) or employee?

Employers: Use Form W-2
For more information, review General Instructions for Form W-2 and W-3 PDF.

Payers: Use Form 1099-MISC to report miscellaneous income or Form 1099-NEC to report non-employee compensation. For more information, review information return reporting.

Payment settlement entities: Use Form 1099-K
Report payments with Form 1099-K, Payment Card and Third Party Network Transactions. For more information, review About Form 1099-K, Payment Card and Third Party Network Transactions.

Businesses must file a tax return whether or not they have a taxable income.

Depending on the structure and activity, businesses may be required to pay certain business taxes.

Use Business Tax Account, Direct Pay for businesses, or the Electronic Federal Tax Payment System (EFTPS) to pay all federal taxes and tax deposits.

Failure to file a return and pay taxes on time may result in penalties and interest.

If you own an interest in a trade or business, you may be eligible for a qualified business income (QBI) deduction. Visit the QBI deduction webpage for more information.

Consider sharing this essential tax information with the independent contractors who work with you:

• Gig Economy and Your Taxes: Things to Know PDF
• Manage taxes for your gig work