Contractor payments
Contractor payments onboard contractors and human supply, collect their tax forms, pay accepted work and file year-end information returns.
Contractor payments onboard contractors and human Suppliers, collect their tax forms, pay accepted work and file year-end information returns.
Contract
| Clause | Terms |
|---|---|
| Starts | A contractor or Supplier is engaged. |
| Before first payment | A tax form is collected and its taxpayer number matched (Information returns). |
| Payment | On accepted work only, paid out through Earnings. |
| Year end | An information return files for every payee over the threshold, and each payee gets a copy. |
| While held | Own. Each Startup pays its own payees. |
Verbs
None.
Interfaces
Upstream
apis.tax, under an Agreement.
Example
A home-workout app pays 31 freelance trainers per class taught. Each trainer’s tax form is matched before the first payout, and at year end 28 information returns file in one batch.