Automated invoice generation and year-end tax filings help ensure you have an audit trail. Mitigate risk by leveraging automated guardrails to meet business requirements.
The rules and regulations around engaging with independent contractors frequently shift and evolve. In this high-stakes environment, WorkMarket can help.
We automatically verify U.S. worker tax IDs to help prevent fraud and payment issues. We also capture W-9s electronically to help ensure compliance with year-end tax reporting and prevent unnecessary tax withholding.
At year-end, WorkMarket prepares 1099-NEC forms and electronically files with the IRS and applicable state agencies on your behalf. Copies are provided to workers too. Learn about the IRS e-filing mandate here.
Once work is approved, invoices are generated automatically on behalf of the worker based on preset payment terms. Easily pay invoices when they're due, helping you pay workers on time.
We help you withhold non-statutory deductions like rent, fees, overpayments and insurance, as well as child support garnishments, from contractor earnings.
WorkMarket captures your important independent contractor documentation including NDAs, licenses, certifications, contractor agreements, even background checks and drug tests. You can easily track which workers have met their requirements and those that may need reminders to complete onboarding.
WorkMarket is a dedicated contractor management system that differs from traditional HCM platforms, giving you the ability to:
Furnish and electronically file 1099-NEC forms
Collect and verify bank information (as quickly as same-day), and US worker tax ID information
Pay contractors on-demand vs. a traditional payroll schedule
Treat independent contractors as business entities
Collect documents like contractor agreements and NDAs
Produce an invoice audit trail for every transaction
Withhold non-statutory deductions from contractor pay
Want to learn more about how you can keep your business compliant? Download our guide to understand some of the latest regulations affecting independent contractors!
“Any company that has a contractor workforce should strongly consider WorkMarket. The platform makes bringing on contractors easy, paying them seamless, and mitigates the compliance risks we were concerned about.”
Erika Cohen, COO, Institutional Real Estate, Inc.
Explore our interactive demo to see how you can leverage automation to manage independent contractors — and virtually eliminate manual processes — from onboarding to pay.
The all-in-one system to manage your independent contractors:
Efficient onboarding
Organize talent
Manage work assignments
Fast, flexible payments
Improve compliance
Dashboard reporting and analytics
Integrate with your existing systems
The primary reason to keep your W-2 employees separate from your 1099 independent contractors is to mitigate risk, starting with how you classify workers. Liability exposure for misclassification of workers can be costly in terms of fees and penalties, taxes, even legal and anti-discrimination law violations. Here's more on the consequences of misclassifying your independent contractors.
Deductions are typically thought of as part of an employment relationship, but they may also be relevant when it comes to engaging with independent contractors. When paying your contractors, voluntary or non-statutory deductions are, by definition, not mandated. However, situations may arise – often as a matter of convenience – where a contractor requests that certain expenses the contractor is responsible for be paid by the company and then deducted from their earnings. Learn more about the compliance considerations on this topic.
An independent contractor, often referred to as a freelancer or gig worker, is someone who is contracted to do work on a per-project basis within a particular time frame. They are not employees but are often considered self-employed. During the onboarding process, they provide a W-9 form to the client and for tax purposes, the client furnishes and files a 1099-NEC at year-end. Find out more about being an independent contractor.
* The term “non-statutory deductions” is used solely for ease of reference and its use is not meant to indicate or imply an employer/employee relationship. WorkMarket does not handle garnishment withholding calculations, remittance to agencies, or agency reporting.
