What if I have w2 employees?
It’s a good idea to manage your contractor workforce and employee workforce separately to keep the lines clear for the IRS. Plus traditional payroll systems handle contractor payments as an “Oh Yeah, we can do those too. Those systems aren’t designed with your independent contractors in mind. Gig Wage is. We’ll happily recommend someone to handle your W2 employees.
When do my contractors get paid?
Once payment is initiated, it takes either 2 business days, for funds to be available in your contractors' bank accounts.
Things that could delay a payment:
No bank account added
Payment was not initiated by 4:00 EST banking cut off Banking Holidays
Gig Wage will display the anticipated deposit date for contractors in both the Admin and Contractor's view, and also in emails sent to contractors alerting them that their payment is on the way.
Why not just keep using my bank ACH?
Your bank helps you pay but not manage and support your contractor workforce, so throughout the year and especially at year-end you are left scrambling for totals, w9s, 1099s and more.
How do I verify my bank account?
You don’t. We do. We have bank authentication with over 9,000 financial institutions and continue to add more. You can use your online banking credentials to quickly and easily set up your account.
What if a contractor doesn’t add their bank account?
Their payments will be held in “Payments Process” and they will get automatic alerts and you can manually notify them again as well.
Can I cancel payments?
Do you create and send 1099s?
Not today but it’s coming.
Is Gig Wage secure?
Yes. Gig Wage and its contractor payments software provides banking transactions that are both secure and compliant. Our team has decades of experience building, designing and managing secure systems for organizations like ADP, PayCycle, Intuit, First Data, and more. Gig Wage is built with these same standards using bank-grade encryption when your data is transmitted and stored.
Why do you ask for my EIN?
If you sign up as a company, your Employer Identification Number (EIN) is required to create accurate tax forms. The EIN is also known as a Tax Identification Number (TIN) and the IRS requires a valid TIN on tax forms like the 1099-MISC.
Why do you ask for SSN?
We need your Social Security Number (SSN) for two reasons: payments and tax forms.
Payments Federal regulations (specifically US Patriot Act Section 326) require our banking partners to identify the individuals involved in a transaction. The SSN is one of the key identifiers used to make sure that those involved in the transaction are who they say they are.
Tax Forms The SSN is also known as a Tax Identification Number (TIN). To create accurate tax forms like a 1099-MISC, the SSN is required by the IRS to have a valid form.
Is my worker a 1099 contractor or a W-2 Employee?
Generally, you can use the Common Law test to determine whether your worker is an independent contractor or W-2 employee. The Common Law test looks at three different categories and the degree of control the worker has. These include:
- Behavioral: Does the company control or have the right to control what the worker does and how the worker does their job?
- Financial: Are the business aspects of the worker’s job controlled by the payer? (like who provides tools/supplies for work, can the worker take a loss, how is the worker paid, etc)
- Type of Relationship: Are there written contracts or employee type of benefits (insurance plans, vacation pay, fringe benefits)? Will the relationship continue and is the work performed a key aspect of the business?
All the factors must be looked at when determining the worker classification. Some of these factors may indicate that the worker is an employee and others will indicate that the worker is a contractor. There is not a set number of factors that determines the worker classification, the keys are to look at the entire relationship, consider the degree or extent of right to direct and control, and to document each of the factors used in coming up with the determination.
If you are unable to determine your worker’s classification you can file Form SS-8 with the IRS for a determination although these can take in excess of six months to receive a determination from the IRS.
For more information on worker classification you can review the IRS page here.
Can I manage my invoices?
Not just yet but we are working on it.
Can I upload a CSV?
Can I add my accountant to my Gig Wage account?
Can I pay non US Independent Contractors?