You or your freelancer have raised an invoice in Worksuite as compensation for work performed or an expense to be reimbursed.
You have Approved the invoice and now want to Schedule it for a pay run (see here if you are not yet subscribed to Worksuite's Global Pay add-on!).
Is the freelancer payable?
In order to be payable, a freelancer must have submitted the following in their Worksuite profile:
- Valid bank account information
- Completed tax filing information
These two forms are referenced in our Help Center article for freelancers here.
Why does Worksuite require tax filing information from freelancers?
Each country has unique income and tax reporting requirements that you must abide by for all payments to contractors. We collect this information to facilitate adherence to these requirements by your company and by Worksuite as your payment processor.
In countries where we assist you with filing income statements for tax purposes, such as Form 1099 in the United States, collecting tax filing information in order to process payments circumvents chasing freelancers retroactively and the potential for filing gaps.
Having tax information on hand also facilitates payment delivery to countries that require beneficiary information beyond their bank account details (e.g. many in South America).
How do we make sure all freelancers submit their tax filing information?
Each onboarding workflow for new freelancers can and should include the pre-built Tax Information stage, along with the pre-built Bank Details stage.
Freelancers also have the ability to complete the Tax Information form independently from onboarding as they build out their profile.
If tax information is missed all the way up to payment processing, we'll begin notifying freelancers to submit their tax info once invoices are raised on their work (more below).
What information does Worksuite collect in the Tax Information form?
Worksuite collects the following tax filing information:
- How the freelancer files, as an individual or business
- The country of tax filing
- Tax identification number
- Legal name or business name
- Mailing address
Outside the United States and Canada, only the top three fields are required.
When are freelancers required to provide their tax information?
All freelancers are required to provide their tax information to be considered payable in Worksuite.
Beginning July 3, 2023, Worksuite will implement a grace period of 60 days in which freelancers who still need to submit their tax information will continue to be payable.
At the end of the grace period, you will not be able to Schedule invoices to be paid out if the freelancer still needs to submit their tax information.
Who is included in the grace period?
Freelancers who have completed valid bank details and still need to submit their tax information are afforded the 60-day grace period to remain payable.
The grace period does not apply to:
- Existing freelancers who are already payable with both bank details and tax information
- Existing freelancers who are already not payable, due to bank details being incomplete or invalid
- New freelancers
How does the freelancer know if they need to submit tax information?
A profile banner alerts the freelancer and includes an “Edit Tax Info” button that directs them to the Tax Information form.
Non-payable freelancers with invoices in the New or Approved status will also receive an email each Tuesday as a reminder to submit their tax information.
Prior to the launch, we notified freelancers in bulk via email campaign.
How do I know if the freelancer needs to submit tax information?
Once the grace period expires, you will see "Partner has missing tax information" upon attempting to Schedule invoices.
Unless you choose to supplement Worksuite's comms to the freelancer, no action is required on your part.
How many of our freelancers need to submit tax information in their profiles? Which ones?
As your freelancer management platform and payment processor, Worksuite carries out tax information collection on your behalf, and freelancers are ultimately responsible for completing bank details and tax information in their profiles to facilitate payment processing.
That said, we can provide you with visibility into the status of tax info completion. If you subscribe to our Workforce Analytics add-on, you'll find a pre-built report in your Worksuite environment called "Bank Details & Tax Info". If not, please request a downloaded report (see below).