IRS Form W-9 is most commonly used by individuals when they are working as a freelancer or independent contractor. This is a requirement for taking jobs through the Praos platform.
As an independent contractor or freelancer using the Praos platform, Praos Health requires you to fill Form W-9, because we need your Social Security number to notify the IRS of the amount you earned via the Praos platform.
Independent contractors vs. employees
As an independent contractor, you are not considered an employee and don’t receive any of the benefits that employees do, such as 401(k) contribution matching or health insurance. However, as an independent contractor you are eligible to claim more deductions for the expenses that relate to your work, such as maintaining a home office. We strongly suggest you seek advice from your accountant to evaluate tax implications.
Receiving your Form 1099
If your earnings exceed $600 for the tax year you will receive a 1099 tax form from us.
This 1099 is important for filling out your tax return at the end of the year. You must include all amounts reported on 1099 forms in your gross income since it is fully taxable just like an employee’s wages. If you fail to report any of this income and pay tax on it, you may be subject to a number of penalties that will increase the amount you owe. Once again, we suggest that you contact a qualified tax professional.