What if I have W-2 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 W-2 employees.
When do my contractors get paid?
Once payment is initiated, it will take 2 business days for funds to be available in your contractors' bank accounts.
Do contractors receive an email when I send a payment?
Yes.
Do contractors receive an email when their payment has deposited?
Yes.
Things that could delay a payment:
• The contractor has not registered or added their bank account for direct deposit
• Payment was not initiated by 4:00 p.m. EST banking cut off time
• Banking Holidays
• Payment was not initiated by 4:00 p.m. EST banking cut off time
• Banking Holidays
Gig Wage displays the anticipated deposit date for payments in both the Business' and Contractor's view as well as the email sent to contractors alerting them that a 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, leaving you scrambling for totals, W-9s, 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 daily. 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” where they will get automatic alerts and you can manually notify them again as well.
Can I cancel payments?
Yes.
Am I able to process reimbursements for contractors separately from my contractor’s payroll?
Yes.
Do you create and send 1099s?
Yes. When a contractor signs up with Gig Wage, we collect their W-9 data. At the end of the year, you have the option of using Gig Wage to file your 1099s with the IRS and issue 1099s to your contractors.
Each 1099 has a $5 fee which covers:
• E-filing tax information return to Internal Revenue Service
• Physical delivery via U.S. mail of tax information return to recipient (if the recipient has not consented to electronic delivery)
• PDF generation of tax information return
• Physical delivery via U.S. mail of tax information return to recipient (if the recipient has not consented to electronic delivery)
• PDF generation of tax information return
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 in 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?
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.
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.
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.
Can my contractor sign up with their EIN instead of their SSN?
Yes.
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:
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Behavioral: Does the company control or have the right to control what the worker does and how the worker does their job?
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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)
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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?
Coming soon to Gig Wage.
Can I upload a CSV?
Coming soon to Gig Wage.
Can I add my accountant to my Gig Wage account?
Coming soon to Gig Wage.
Can I pay non US Independent Contractors?
No.
Have a question or concern? Send us a message via our live chat in the bottom right corner of this window.