What does it mean to be a Freelancer? (1099 contractor)

Being a freelancer (a “1099” contractor) means that you are already self-employed and providing services to Raise.

As a freelancer, you will provide Raise with applicable tax forms during onboarding and are responsible for managing your own services, including tracking your income and expenses.

This classification impacts:

  • Tax Withholding: Unlike W2 employees, taxes are not automatically withheld from your payments.
    • You are responsible for paying your own taxes such as federal, state, and possibly local taxes.
    • You will complete a Form W-9 during onboarding. 
  • Social Security and Medicare: You are responsible for contributions to Social Security and Medicare payments
  • Year-End Tax Forms: At the end of the year, you will receive a 1099-NEC form from Raise if you earn $600 or more during the tax year. 

Year-End Tax Forms

  • If you are a US Citizen, at the end of the year, you will receive a From 1099-NEC from Raise if you earn $600 or more during the tax year. 
  • If you are not a US Citizen, you will receive a Form 1042-S if you had taxes withheld on your payments.

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