UpWork is a freelancing platform that allows businesses to connect with remote workers for a variety of projects. One of the key benefits of using UpWork is that businesses can tap into a global pool of talent, which can help them save money on labor costs. But does UpWork report income to the IRS?
According to UpWork’s terms of service, “all payments made through the Site are processed by our Payment Processor. You hereby authorize us to share your Personal Information with our Payment Processor for the purpose of processing payments you make to us.” So it appears that UpWork does share information about users’ incomes with the IRS.
However, it’s important to note that UpWork is not an employer, and therefore is not required to withhold taxes from workers’ earnings. That means it’s up to individual freelancers to report their income and pay their taxes accordingly.
While some may view this as a drawback, it’s actually one of the key benefits of using UpWork. Because businesses are not responsible for withholding taxes, they can save money on labor costs. And because freelancers are responsible for paying their own taxes, they can deduct expenses like office space and internet service from their taxable income.
In conclusion, while UpWork does share information about users’ incomes with the IRS, businesses can still save money on labor costs by using the platform.