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Requirement to withdraw earnings

Starting April 7, oDesk must confirm whether or not you are a U.S. taxpayer. This confirmation is required for all withdrawing contractors. This means:

  • oDesk will ask you to confirm your taxpayer status.
  • If you are NOT a U.S. taxpayer, by typing "Accept" in the W-8BEN form you are confirming this fact. [This is most common for contractors outside of the U.S.]
  • If you ARE a U.S. taxpayer, you must complete a W-9 online. [This is uncommon for contractors outside of the U.S.]

You can confirm your status at any time before your first (or next) withdrawal in Payments > Withdrawals.

What happens when I complete the W-8BEN?

The W-8BEN is a form used to confirm that you ARE NOT a U.S. taxpayer. This is only for oDesk record-keeping purposes. oDesk is NOT withholding taxes nor reporting your income via the W-8BEN form. You will need to confirm your taxpayer status with a W-8BEN or W-9 to begin/resume making withdrawals.

This does NOT determine or in any way affect whether or not you owe taxes in your own country. Please consult a local tax professional to determine whether your contractor earnings are taxable.

Learn more about W-8BEN and W-9.

Vote Result

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Score: 8.5, Votes: 33
Huh?

Huh?

Does this affect moi?

Veni, Vidi, Vici.

Yes. You'll have to accept

Yes. You'll have to accept the W-8BEN if you intend to make any withdrawals after April 7.

Does this mean I'll get taxed

Does this mean I'll get taxed for my earnings after the 7th ??? Sad

Veni, Vidi, Vici.

No differently than you are

No differently than you are today. The form is just to confirm you aren't a U.S. taxpayer. It won't affect whether or not you owe taxes to your own government.

form inquiry

Hi,

I am from Philippines. I just want to clarify.. the form is just to confirm we are non US tax payer? and our earnings will not be taxed?

Thank you.

Yes, form is just to confirm

Yes, form is just to confirm you aren't a U.S. taxpayer. It won't affect whether or not you owe taxes to your own government.

But that doesn't mean you don't owe taxes. Please consult a local tax pro. Contractors are supposed to be paying taxes on their earnings in most countries.

hi

where will we get the W-8BEN form?

An alert will appear on the

An alert will appear on the withdrawals page on Thursday. It will pop up the form and have the box to accept right in that window.

What i need to do now ?

I'm Bangladeshi and from Bangladesh,So not U.S. taxpayer. Now what i need to do ? Odesk required any of my local tax identification documents to us ? Sorry i'm really not cleared about this new requirement.

No local tax documents. No

No local tax documents. No paperwork to fill out. You'll just need to type "accept" in a pop-up box sometime between Thursday and your next withdrawal.

I been waiting for the alert

I been waiting for the alert but I still don't get any until this time. I'm afraid I can't withdraw my earnings next week.

hello

I am from philippines, So i'm a tax payer for us.right? reply asap.. clarification...please

If you're from the

If you're from the Philippines you are probably NOT a U.S. taxpayer. You've never filed taxes with the United States IRS, right?

U.S. Citizen expat living in Philippines

I'm in the odd-group of not living in the U.S., but being a U.S. citizen. I think I need a w-9 in this case. I live in the Philippines. Up to $90,000 is tax exempt though.

Yes, if you're a U.S. citizen

Yes, if you're a U.S. citizen abroad you most likely need to file a W-9. If fact, that's one of the many reasons we need to start asking everyone the taxpayer status question (rather than just contractors who live in the US).

W-8BEN

Ok thanks for the info

Withdrawal schedule

Hi. We usually withdraw our earnings on Wednesdays. Since it has been stated that the process of accepting the W-8BEN form is on Thursday (April 7), will this affect our withdrawal process this Wednesday (April6)?

I hope not since it basically takes a day or 2 for Paypal to transfer our funds to our bank accounts. Any delays would also affect the time that we'd be able to withdraw our money in our bank accounts. Thanks!

You are correct, it won't

You are correct, it won't affect this week's wednesday pay day. However, the W-8BEN should cause no delay. Clicking the link and typing "accept" takes only a few seconds.

Great! Thanks a lot!

Great! Thanks a lot!

I would like to clarify this

I would like to clarify this statement " Your oDesk funds will become available once you confirm your taxpayer status with a W-8BEN or W-9".

Our funds are usually available on Wednesdays.

You are correct, it won't

You are correct, it won't affect this week's Wednesday pay day. However, you'll have to confirm the W-8BEN if you intend to make any withdrawals after April 7.

The W-8BEN should cause no delay. Clicking the link and typing "accept" takes only a few seconds.

My location is in Philippines

My location is in Philippines so it means i will type "Accept" W-8BEN form? Right?

Assuming you're not a U.S.

Assuming you're not a U.S. taxpayer, that is correct. If you were a U.S. taxpayer, you'd know it.

w8ben

I really like working in oDesk, I just hope that these changes will not have negative effect that most buyers and providers will bail out.

hi. from philippines here..

how bout the contractors from philippines? if we accept? what will happen? we will be charged also for the tax? or not?

No one will be charged tax by

No one will be charged tax by oDesk.

Most contractors in the Philippines should type accept in the W-8BEN. Once you type accept, everything will be exactly the same as it is today. But you need to talk to a local tax pro about whether or not you owe tax in the Philippines.

I think the wording on this

I think the wording on this page of your site is mis-leading: https://www.odesk.com/help/help/policies/w9_form
"All contractors in the US must file a W-9 with oDesk"

Yes, that is true, but to be it would be more accurate to say:
"All US taxpayers must file a W-9 with oDesk" (as you have said on this page)

I am a US Citizen, but do not reside in the US, so I have not provided a W-9. Today, I realize that I should have provided you with a W-9 (and now will).

Thank you. We'll keep

Thank you. We'll keep tweaking that page to address the issues brought up in this thread. After all, the point of help content is to answer the questions users have Smile

Need further explanation

I think oDesk should make an extra effort on explaining exactly what the W-8BEN and W-9 are, instead of saying it's just for "record keeping purposes". Personally, I am not comfortable "accepting" anything that I do not have full knowledge of (as it's basically the same as affixing your signature on a document you haven't read). As far as I know, the W-8BEN is an IRS form used for tax exemption so that non-US citizens will not have to pay US tax. Instead of stating freelancers NEED to ACCEPT the form, it will be better to provide a clearer and more detailed explanation about what it is, what it does and where it came from so that oDesk workers like me (who have minimal knowledge of how these things work) will be able to understand. Why not write-up a post about it and display the links here? That would help.

It's there

Check the last line of the first post.

hello i am from Pakistan i

hello i am from Pakistan i researched it a bit and concluded that we may have to fillup w-8 form and submit to American embassy to obtain tax number soon ? pardon if i am wrong but i sell 3d models on one site based in USA and 2 years back they requested every non-us citizen to filup w-8 forms and submit to local American Embassies to obtain tax number , i hope it isnt the same case here Smile

You do not need to submit

You do not need to submit anything to the embassy. You do not need to obtain or submit a tax number.

You just need to confirm that you aren't a U.S. taxpayer by typing "accept" on the W-8BEN pop-up form (starting April 7).

Please tell me which

Please tell me

which particular change has taken place in US law and caused this need of W-8BEN to be 'accept'ed?

which particular regulation in tax field has been amended or approved by US government?

I'm from Phils. and Thanks

I'm from Phils. and Thanks for all the clarifications there. Just take time to read this link -> Learn more about W-8BEN and W-9. Maybe that answered, our questions.(Pdf is there as well for W-8BEN). Thanks a lot Odesk Smile

The change is necessary so that we comply with U.S. tax laws

oDesk has always required U.S. taxpayers to complete IRS Form W-9. We will now require NON-U.S. contractors to complete IRS Form W-8BEN to certify their non-U.S. Status so that we comply with U.S. tax laws. Because oDesk operates in the Unites States, completing the W-8BEN ensures foreign contractors that their earnings are NOT subject to U.S. tax or withholdings. For more information regarding U.S. taxation and withholding obligations associated with earnings paid to foreign nationals, please visit www.irs.gov or consult a tax expert or attorney.

U.S. Expat

Where is the W-9 form?

I am an Expat not residing in the U.S. I need to fill out a W-9 but I do not see one online.

Is oDesk going to be deducting taxes from my pay?

$90,000 of my pay is tax exempt and therefore I need to ensure that oDesk does NOT deduct anything from my income as my o-Desk pay will not reach that amount.

Advice to Expats...

When I filed my taxes this year I simply listed my income on form 2555 which made my taxable income 0.00. The federal government rejected my original filing because I had $0.00 taxable income after the exemption so I was advised to enter $1 in taxable income from interest such as that earned on a bank account. I was able to do so and my tax filing was accepted. My filing with the IRS did not require that I produce any more documentation, and I'm not working in the U.S.

Can I do freelance work on ODesk as a Philippine Corporation?

U.S. policies are constantly changing and therefore I feel the need of the protection created by a Philippine Corporation. May I still work for ODesk as a corporation?

The W-9 link will be

The W-9 link will be available to you Thursday.

oDesk doesn't deduct taxes from anyone in the U.S. or abroad.

Yes, expat taxes can be complicated. I strongly advise you to work with a professional familiar with local and IRS codes.

Yes, you can be a corporation. This isn't uncommon for agencies. You will need to contact Customer Support to file a new W-9 (or W-8BEN if it results in a change in taxpayer status) after you get that set up.

W-8BEN filling

is there a tutorial available for the W-8BEN form?

There are

There are instructions
www.irs.gov/pub/irs-pdf/iw8ben.pdf

But I still don't know

which particular change has taken place in US law and caused this need of W-8BEN to be 'accept'ed?

which particular regulation in tax field has been amended or approved by US government?

Mike answered that above

There has been no tax law changes, Here is what he said incase you cannot find it:

Quote:

oDesk has always required U.S. taxpayers to complete IRS Form W-9. We will now require NON-U.S. contractors to complete IRS Form W-8BEN to certify their non-U.S. Status so that we comply with U.S. tax laws. Because oDesk operates in the Unites States, completing the W-8BEN ensures foreign contractors that their earnings are NOT subject to U.S. tax or withholdings. For more information regarding U.S. taxation and withholding obligations associated with earnings paid to foreign nationals, please visit www.irs.gov or consult a tax expert or attorney.

If that does not satisfy you then go to www.irs.gov and have fun reading it.

I am a Hiring Manager

Will this affect my ability to hire contractors? I am assigned as a hiring manager for the team I am currently working with

No this will not affect

No this will not affect hiring. However, you will need accept the W-8BEN (or file a W-9) before you can withdraw and contractor earnings.

Thanks

Thanks for the quick response Jacqui

I admire that oDesk is making

I admire that oDesk is making necessary measures to secure the financial activities of contractors and employers as well. However, this one creates a lot of confusion...

Is there anything I can

Is there anything I can clarify for you? We're trying to make it as clear and simple as possible.

W-8BEN

I have already accepted it but still I cant withdraw my earnings,, whats the problem? How long does it need to confirm?

The W-8BEN hold is released

The W-8BEN hold is released as soon as you submit the ACCEPT form. But the tax status isn't the only requirement to withdraw funds. You'll also need an active withdrawal method. If you added, for example, a local funds transfer bank account today it will not become available for withdrawal for several days. You can check the active on date in Payments > Payment Methods.

I withdrew my funds from

I withdrew my funds from oDesk to paypal. And now the funds are lost somewhere on their way. Maybe it is because of W-8BEN verification process.

Accepting the W-8BEN should

Accepting the W-8BEN should have no affect on your withdrawal. Having you used this withdrawal method before? Please contact Customer Support for assistance.

W-8BEN

I am a Bangladeshi people. So, This chance is good for me.

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