# 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. {% hint style="info" %} 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. {% endhint %} ### 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](https://www.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 .