How to check W8 Status in OBO and In-Product
To check if a W8 is completed for a customer, you can go to Own Accounting Entities > click the wrench icon, then Other operations > open the Account entity bar. What you're looking for is:
- "W8BEN TIN" field IS filled in AND
- "W8BEN signed date" DOES show it was signed with a signed date on or after 11/29/2022 (unless they have the SMF noting withdrawals will be limited by 7/19/2023, then their signed date should be on or after 7/6/2023)
If you see both of the above, then your customer should be all set!
IMPORTANT - The caveat to the above, though, is that if the customer changes something (for example their name and/or tax residency), that won't be super clear in OBO at the moment (we have a request in to have this added). It's important to keep an eye out for these cases (if they mentioned updating / changing info) as we do want them to submit a whole new form if they make changes in that regard.
The in-product completion / incompletion tax page statuses can be seen this way:
- "completed" vs. "not completed" tags within each card under Tax Information, see an example below (the goal is to have all show "completed" in order for the W8 to be complete)
- if important info changes within a card after W8 completion (e.g. tax residence) the status of other needed cards will also update, as needed i.e. the TIN card will move to "not completed" as a new TIN will be required in that case
If qualified, a 1099-K is typically mailed out towards the end of January.
If FL changed their address and they DID receive 1099-K:
If the 1099 was received and it just has an incorrect address, reissue is not needed. Inform the FL the most important thing to the IRS is the Tax ID and the current one is good for filing taxes. Tell them to make sure the new address is updated in our system for future forms by going to Settings > Tax Information - no map or escalating to #ask-taxes necessary.
If FL indicates they entered the incorrect Tax ID or Tax Name and it is NOT for the previous tax year, but for the current year:
Instruct FL to update the correct information within their Upwork account by going to Settings > Tax Information - no map or escalating to #ask-taxes necessary.
1099 Reissue Requests Process Map
Helpful KB Links
- W9 and W8BEN Requests tab (Internal)
- Report Income from Upwork (External)
- How do I file a Form W-9 with Upwork (External)
Prior to disbursing funds, Upwork requires all freelancers to complete the tax information section of their settings. Freelancers who are subject to US tax laws will complete the W-9 information. International freelancers will complete the W-8BEN information. At the end of the tax year, Upwork may use this information for reporting to tax authorities.
IRS W-9 Forms
Process Map
July 2023 update:
We launched the ability for Upwork FLs to download 1099-K for tax year 2022. Yes, the tax reporting year is a bit in the past, however we still launched this and ensure we can make steps towards launching this initiative in full force for the 2023 tax year. A few questions you might have right off the bat:
- Why so late? IRS delayed the implementation period for 1099-K changes, and as such, we delayed in effort of prioritizing other critical tax initiatives
- How many users are impacted? Approximately 1,000 FLs in the US had a 1099-K issued to them in 2022
- How did they receive their 1099-K if digital download was not available? snail mail
- What will UX impact be? If a user is one of the 1K with 1099-K PDFs issued, and they visit Tax Info History, they will see a section where they can download, and if they have not yet opted in to digital delivery, they will see the option directing them to opt in
- Did we announce this (publicly)? No, this is a quiet launch, observe naturally, and learn. 2023 tax year is a different story, and we will kick that off in due time.
Internal reactive FAQ only:
Can I view and download a copy of my Form 1099-K on Upwork?
If you received a 1099-K via mail in 2022, you can download it by going to Settings > Tax Information. If you didn’t consent to e-delivery before, you’ll be prompted to do so when you download.
Customer-facing Resources:
US Tax law requires that we provide certain US based freelancers with IRS form 1099-K as proof of income. It has details that freelancers need to file their taxes or to apply for certain government benefit programs. Due to recent changes to US tax law (The American Rescue Plan Act of 2021), some freelancers may reach out to us wanting to know more about these changes or why they did not receive a form.
The act was passed in 2021, and went into effect in the 2022 tax year. The new rule is effective beginning with payment transactions settled after December 31, 2021.
Past requirements (2021 tax year and earlier):
In the past, freelancers received a form 1099-K from us when they had $20,000 in payments and 200 transactions.
Current requirements (2022 and onward):
The IRS has delayed their requirement for third party settlement organizations such as Upwork to report transactions of at least $600. You will still receive a Form 1099-K if you are a U.S. Person and receive at least $20,000 in payments from your clients on Upwork in 2022 that included 200 or more transactions. If you reach this amount, you will receive a Form 1099-K from Upwork in 2023 for your 2022 transactions.
For any interactions that come to us about this email / request, please use ZD categories Taxes > US Tax Info Request.
Note: If a customer reaches out after having received the email and their account is deactivated, they can ignore the email. They aren’t required to re-activate their account / update their information.
On November 17th, we emailed our US freelancers (about 300k) in regards to updating their tax / W-9 information. With the new 2022 requirements for 1099 forms moving to $600 earnings (versus $20,0000 in past years), Upwork will be sending out far more 1099s for this tax year. Because of this, it's imperative for us to ensure freelancers have their most up-to-date information in their accounts.
Important Update:
The IRS has delayed their requirement for third party settlement organizations such as Upwork to report transactions of at least $600. FLs will still receive a Form 1099-K if they are a U.S. Person and receive at least $20,000 in payments from clients on Upwork in 2022 that included 200 or more transactions. If FL reaches this amount, they will receive a Form 1099-K from Upwork in 2023 for their 2022 transactions.
With these emails, our customer-facing articles have also received updates including adding FAQs (the first 2 are also referenced in the email for our customers):
Here's the email copy US freelancers will receive, (the ‘sender’ on this email is "upwork@t.upwork.com"). The goal of the email is to direct the customer to their Tax Information within Settings to verify the information is correct and/or update if out-of-date.
Reactive FAQ’s (for customers):
These are “reactive only” FAQs, but please also see the multiple FAQs showcased on the customer-facing pages above.
Form 1099-K FAQs, reactive, for CS when answering questions:
If my state also requires a 1099-K form, will I receive two 1099-K forms?
No, you will only receive one 1099-K form. We will provide a copy of this 1099-K to you, your state, and the federal government.
W-9 FAQs, reactive, for CS use when answering questions:
Why should I have to complete a Form W-9 when I only make a few hundred dollars on Upwork?
The Internal Revenue Service requires us to collect Tax Identification Numbers (SSN, EIN, or ITIN) for all U.S. taxpayers who receive payments on Upwork, no matter how much you earn. If we do not have your valid SSN, EIN, or ITIN on file, we are required to withhold taxes from your earnings and send them to the IRS.
Why can’t I just fill out this form on my own and submit it to Upwork?
You need to submit a W-9 with a valid TIN to ensure that we are compliant with tax law and do not have to begin withholding taxes on your earnings on Upwork and sending them to the IRS. Submitting a paper W-9 could delay the process and cause taxes to be withheld on your earnings.
For any interactions that come to us about this, please use ZD categories
- Taxes > Non-US Tax Info Request for W8-related cases and/or
- US Tax Info Request for W9-related cases
IMPORTANT -
- Please note, the "Tax information - additional request" card is entirely separate from any W8 needs. This section can be ignored when checking for completion of the W8-BEN / W8-BEN-E tax forms.
- If a customer received an email to update their tax documents, but they do not have an SMF when you sudo in, the customer is OK and no changes need to be made. (This just means our records got updated after the email population was pulled.)
Customer-facing resource:
On 7/6/2023, we emailed about 128k freelancers that are currently non-compliant with US tax law as they have yet to fill out their W8-BEN / W8-BEN-E tax forms. These same FLs will have an SMF on their account. (If a customer has NO financial activity, they won't see the SMF, but once they start earning, the SMF will pop up for them within 24 hours.)
We also share they have until July 19th to complete, or their ability to withdrawal will be paused. If paused, after they fill in their forms, their withdrawal ability will be automatically resumed.
- Full email here
- SMF will state: "Action required: Your withdrawals will be suspended on 7/19/2023 if you do not update your tax information. For more details, read our FAQs."
Both the email and the SMF direct customers to their Tax Information page in their account as well as the Form W-8BEN or W-8BEN-E help article, in case they need support.
Disclaimer: If a FL has the above SMF and they’re showing a W8 signed date before 7/6/2023, they likely need to complete the forms again and/or did not submit needed documents via email:
In India / Mexico where we’ve been collecting TIN prior to the November 2022 W8 changes (referred to as PAN in India & RFC in Mexico), if they’re seeing the SMF & have a signed date prior to 7/6/2023, this likely means they never resubmitted their info in the new form in their account. They’ll need to resubmit to complete which will remove the SMF, as well.
If a customer’s account in sudo shows they marked “other entity type or claiming treaty benefits" like here, they would have received an email from the tax team with additional information and next steps. If they’re seeing the SMF, this likely means they have not submitted to the tax team yet, or the documents have not yet been reviewed.
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If they claim to not have received the email and/or cannot find it, we need them to complete TWO forms
- FORM ONE, the W8 form - ask them to download one of these forms (for "Individuals" aka sole proprietorship, please use this one & for Entities, please use this one) AS WELL AS
- FORM TWO, the Affidavit - download a copy of this form here and attach it to their ticket (you must download and attach, do not provide the google link)
- Instruct the customer that once BOTH are downloaded, please fill in anything relevant, sign, and email both to our tax team at taxrecordsupport@upwork.com.
- Tax team will review and reach back out to them within 5 business days.
- If they claim to already have sent in the form and it’s been past 5 business days, ask for the specifics of when the form was sent in, then see an SA/Lead to reach out to #ask-taxes for support
Leads & SAs - if additional support is needed as this internal KB and/or customer-facing help article does not address the customer’s concern, please see #ask-taxes in Slack for assistance.
Reactive FAQ’s (for customers):
These are “reactive only” FAQs, but please also see the multiple FAQs showcased on the customer-facing pages above.
Why can’t I just fill out this form on my own and submit it to Upwork?
You need to submit your completed W-8BEN or W-8BEN-E by December 31, 2022, to ensure that we are compliant with tax law and do not have to begin withholding taxes on your earnings on Upwork and sending them to the IRS. A paper W-8BEN or W-8BEN-E could delay the process and cause taxes to be withheld on your earnings.
If you do decide to complete a paper form, or need to complete a paper W-8BEN-E due to being an entity other than an individual, corporation, or partnership, you will find the instructions in-product.
Why do I have to complete these tax forms when I already gave you so much information in the IDV process?
The IRS requires these specific tax forms, and these forms include information that is not included in the IDV process, such as your tax classification.
Freelancers in Mexico and India:
Internal Info:
Mexico and India are the only countries (until 11/29/2022) that had the ability to add in a Tax Identification Number (TIN). In India, it’s called PAN and in Mexico, it’s called RFC.
- If they’re a brand new customer on Upwork (after the launch on 11/29/2022), they won't see the old version of India "PAN" or Mexico "RFC" cards within Tax Settings. They’ll just see the new W-8BEN experience cards just like everyone else, including a card asking for a Tax Identification Number. But, when it comes to that last TIN step, it will be localized to Mexico / India, where they’ll then see PAN or RFC.
- If they’re an existing customer who has already provided their PAN / RFC number, we do need them to provide it again so we can have a valid W-8BEN on file. However, if their ID number in Mexico or India was already approved, then we don't change that status.
For inquiring freelancers:
If a customer from Mexico or India reaches out concerned about their Mexico RFC / India PAN validation and/or are confused why they need to do this as they already had their Tax ID added, you can assure them that if their RFC / India has already been validated / approved, this does not change that status, but we do require them to still refill out the information so we have an updated W-BEN on file.
CS Reactive Specific Handling
Freelancer moved to a different country and is unsure what they should add for their Tax Residence vs. Country of Citizenship?
The “Country of Citizenship” should be the country they have citizenship in and the “Tax Residence” address should be wherever they reside today. They do need a TIN for the country they live in today, as well. If they do not have one for the country they live in today, please follow “Customer doesn’t have TIN / Customer doesn’t have TaxID” below.
Example scenario: A citizen of India has moved to Canada. This customer would add India for Country of Citizenship and Canada for their Tax Residence. They will also need a Canada TIN.
Note: This also applies to freelancers that have relocated from Russia/Belarus. If they are still a Russian / Belarusian citizen, they can enter the respective country as their "Country of Citizenship." However, their “Tax Residence” will be where they currently reside and must not be in Russia or Belarus.
Customer doesn’t have TIN / Customer doesn’t have Tax ID
If a customer does not have a Tax ID, check if their tax residence is in one of the following countries:
- Bahrain
- Bermuda
- United Arab Emirates (UAE)
- Australia
- British Virgin Islands
- Cayman Islands
- Japan
- Sri Lanka
- Oman
- Qatar
If YES their tax residence is one of the above countries - they may select the following checkbox denoting they do not have a TIN. By doing so, they will not be required to enter a TIN, and they will be able to fully complete the W-8BEN or W-8BEN-E form.
If NO their tax residence is NOT one of the above countries - please utilize our current FAQ to help guide them:
What is a Tax Identification Number and how do I get one?
This is the number that your country uses for collecting your tax information and may have a different name, such as PAN in India, for example. Some countries may use a National ID number. You may be able to find information about your country’s TIN here. If you have questions about your number, you will need to consult a tax advisor in your country or contact your local tax authority.
If they are insistent they do not have one / cannot get one, they need to fill in TWO forms and sent to our tax team:
- FORM ONE, the W8 - ask them to download one of these forms (for "Individuals" aka sole proprietorship, please use this one & for Entities, please use this one ) AS WELL AS
- FORM TWO, the Affidavit - download a copy of this form here and attach it to their ticket (you must download and attach, do not provide the google link)
- Instruct the customer that once BOTH are downloaded, please fill in anything relevant, sign, and email both to our tax team at taxrecordsupport@upwork.com.
- Tax team will review and reach back out to them within 5 business days.
SLA - The Tax team will reach out to the customer in approx 3-5 business days from the day they submitted their PDF form. The Tax team will directly email the customer with follow ups, this will not be done via Zendesk. The freelancer will most likely need to sign an affidavit. The Tax team will be in touch with next steps on how to complete the affidavit along with any other updates they require.
Freelancer previously filled in a PDF form, but they have not heard back. It is also past the promised timeframe, and they see the SMF:
If a freelancer is checking the status and it past the timeframe that we quoted (3-5 business days), reach out to a Lead / SA with the freelancer's OBO URL link and the date that they sent their email. Leads / SAs will then reach out to the #ask-taxes channel requesting an update.
Freelancer is concerned about the affidavit signature, due to changes that have occurred in the last year:
If a customer reaches out concerned about the affidavit signature due to changes occurring in the last year:
- If it's a foreign country to foreign country move - they are ok and can still sign
- If they moved from a foreign country to the US OR need to claim treaty benefits - we need 2 W-8BEN forms. They should complete the one online, signing the affidavit (the system won't accept completion without signature) AS WELL AS download the proper PDF form*, filling it out to include their info as it was at that time (4) then email to taxrecordsupport@upwork.com including the time period when that specific W8 would be valid for
*PDF form = Individuals aka sole proprietorship can use this one and Entities can use this one
Freelancer is filling out the PDF forms (mentioned in previous FAQs) and they’re asking if they can leave some info blank as they’re unsure how to fill them out:
If they feel like there is information that isn't applicable or that they don't have it, they can leave it blank and submit. If it's critical info that is missing, the tax team will let them know once they review it and email the customer back directly.
The freelancer states the W-8 card is grayed out (see screenshot). What do I do?
Guide the freelancer to filling in the “Tax Residence” card. This will open up the W-8 card for editing.
Freelancer is stating there is nothing for them to sign and they’re confused.
Filling in the W-8BEN card completely will open up the additional cards, including the signature piece. This screenshot showcases only 2 cards, but as soon as the freelancer fills in the “federal tax classification” and clicks “save”, it’ll open the rest of the form / cards for them to fill out.
Freelancer signed their W-8BEN, but they don’t see their signature anymore, what happened?
This is by design for both the customer as well as us when we sudo. If the customer signed the TIN card, then they are all set. You can confirm this if you see “Completed” in the capsule beside the section’s title once they’ve completed and submitted their information. If they haven’t done so yet, the capsule will say “Not completed”.
