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Legal: W-9 Form and Taxes

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What is a W-9?
A W-9 is a tax form required by the IRS for all providers who reside in the US. All providers in the US must file a W-9 with oDesk. (Learn more about W-9 forms on Wikipedia.)
You only need to file the form once (not annually). Just keep your address updated (Profile > User Info) so we know where to send your 1099.
You'll need to download the oDesk W-9 Form (PDF). Once complete, this form should be submitted to our Finance department via email (billing@odesk.com) or fax (1-650-853-4106). Please include your oDesk user ID in your email or fax and ensure that the name on your account matches the name on your W-9 form.
US-based providers cannot withdraw their earnings until their W-9s are on file.
oDesk cannot accept a W-8BEN to file in place of the W-9. Therefore ACH withdrawals are not available for providers in other countries - not even if you have a US bank account.
What is a 1099?
According to IRS guidelines, US-based providers who have earned more than $600 in the previous year will be sent a 1099 form by January 31 to assist in tax preparation. You must file a W-9 form to receive a 1099. (Learn more about the 1099 form from the IRS.)
Do providers have to pay taxes?
You may be responsible for paying taxes on your earnings - even if you are outside the US and/or earn less than $600 per year — and we recommend you consult a local tax professional. In most countries (including the USA), yes, you do need to pay taxes.
Do buyers have to pay taxes?
Tax laws vary from country to country, but US-based buyers working with US-based providers should evaluate the nature of the working relationship based on IRS and other federal, state and local agency guidelines. If the nature of the buyer-provider working relationship indicates that the provider is an Independent Contractor, the buyer does not need to pay payroll taxes or withhold income taxes. oDesk provides all independent contractors with 1099s by January 31 of each year.
If the working relationship is determined to be an employee relationship, the buyer must hire the provider through oDesk’s staffing services affiliate or otherwise hire as an employee. Employee relationships require income tax withholding and payment of payroll taxes, among other things.
For more information on oDesk’s staffing services or a formal assessment of your provider relationships, please email billing@odesk.com. Indicate in your email that you are interested in these services and we will contact you to discuss further.
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