Tax Overview

Tax Overview

Folio engages all workers as independent contractors. This means Folio does not withhold taxes from your payments. You are responsible for understanding and fulfilling your own tax obligations.

This page provides general informational guidance only. It is not legal or tax advice. Consult a qualified tax professional for guidance on your specific situation.

Independent Contractor Status

As an independent contractor on Folio:

• No taxes are withheld from your payments. You receive your full agreed compensation.

• You are responsible for reporting your Folio income to the relevant tax authority in your country.

• You are not entitled to employee benefits (health insurance, retirement contributions, etc.) through Folio.

US-Based Workers

W-9 Form

If you are a US citizen or resident alien, Folio requires a completed W-9 form (Request for Taxpayer Identification Number and Certification) before your first payment is issued.

1099-NEC

If you earn $600 or more from Folio in a calendar year, Folio is required by the IRS to issue you a 1099-NEC (Nonemployee Compensation) form by January 31 of the following year. This form reports your total earnings to the IRS.

• You will receive your 1099-NEC electronically through the Folio platform or via email.

• If you earn less than $600 in a calendar year, no 1099-NEC will be issued — you are still responsible for reporting that income.

Self-Employment Tax

As a self-employed individual, you are responsible for paying:

• Federal income tax on net self-employment income

• Self-employment tax (Social Security + Medicare), currently 15.3% on net earnings

• State income tax, where applicable

You may be required to make quarterly estimated tax payments to the IRS if you expect to owe $1,000 or more in federal taxes for the year. Consult a tax advisor or visit irs.gov for more information.

Non-US Workers

W-8BEN Form

If you are not a US citizen or resident, Folio requires a completed W-8BEN form (Certificate of Foreign Status of Beneficial Owner) to confirm your non-US status. This form reduces or eliminates US withholding obligations.

Non-US workers are responsible for reporting their Folio income in accordance with the tax laws of their country of residence.

Submitting Tax Forms

Tax forms are collected during onboarding or prior to your first payment. If you have not submitted the required form, you may experience a delay in receiving payments.

Questions

For tax-related questions specific to your situation, consult a licensed tax professional. For platform-specific questions about forms or documents, contact [email protected].