U.S. businesses must file 1099 forms for contractors earning $600+ annually. Properly storing, organizing, and validating tax data can be time-consuming and error-prone. Ensure accurate and compliant 1099s by filing through TalentDesk
Step-by-Step Guide for Managers
1. Account Tax Settings
Please inform your Customer Success Manager if you plan to file 1099s through TalentDesk so they can enable the relevant settings for your account.
To customize your organization’s account tax settings go to Settings > Tax to configure tax settings.
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Mandatory TIN Collection
By default, TalentDesk requires Providers to provide a Tax Identification Number (TIN) for U.S. taxpayers. You can make TIN submission optional if needed by disabling this setting.
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TIN Validation (Required for 1099 Filing) - Charges Apply
TIN validation ensures error-free 1099 filings, and is integrated with Compliancely. Enabling this feature after your Providers have already onboarded will trigger auto-validation for any existing providers in your network. Providers with unvalidated TINs will be notified to correct their info.
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Mandatory Tax Docs (W9 for U.S. Contractors)
Enabling this setting requires U.S. contractors to upload a W9 form to their account before starting work. You can make this field optional by disabling this setting.
2. Gather Contractor Information
Providers enter their tax information during their TalentDesk onboarding. U.S. Providers enter their SSN or company TIN and upload a W9 form; non-U.S. Providers provide a W8 form.
Tax details will be saved to the provider’s profile and will only be visible to Organization Owners and Managers who have permission to access this information.
Company details
If a Provider is operating as an incorporated entity, they will be required to add their company name, address, and Taxpayer Identification Number (TIN)
Individual details
Individual contributors who identify as US taxpayers will be prompted to enter their full legal name, Social Security Number (SSN), and an up-to-date W9 form.
3. Review Tax Forms
Managers with permission to access 1099 filings can review and approve W9 forms via Taxation > Legal in the left menu.
Tax form Status options: Missing, Pending Review, Approved, and Rejected.
To review a tax form, select the Review button next to a Provider’s line entry.
For tax form approval, identify the following:
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The TIN on the Provider’s W9 form matches the TIN they have added to their TalentDesk tax section.
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The address on the Provider’s W9 form matches what is on their TalentDesk profile.
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An effective date is available on the Provider’s W9 form
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If errors are identified or information is missing, please Reject the form and provide a reason so the Provider is notified and can make the necessary corrections.
If the data on the Provider’s W9 matches the information that is entered into TalentDesk, then before approving the form, you must first:
Set the date from which the TIN number is effective
Indicate whether a 1099 filing is required for the Provider (some types of corporations do not require a 1099 to be filed).
Approve the form. Select the green, Approve, button at the bottom of the page.
4. Validate TINs - Required for 1099 filing
TIN validation occurs when Providers enter their tax information to their profiles or in bulk at the time the TIN validation setting is enabled for your account.
W8 forms don’t need review but will be stored in your account for future reference.
5. Review Company Details
Complete the Company Details section under Taxation to provide the necessary IRS info (e.g., EIN, address).
6. Confirm Total Payments
When the TIN validation setting has been enabled in your account, you can add off-platform payments made to Providers outside of TalentDesk during the tax year. This way, all annual earnings can be accounted for.
To add earnings, click the dropdown arrow next to the contractor’s line entry and select ‘Edit off-platform payments’.
A modal window will appear where you can enter any additional known earnings your company made to the contractor outside of TalentDesk during the tax year.
7. File 1099s
Managers can file for all Providers at once or individually. The system will alert you if any required information is missing.
Please note:
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1099s for the current year cannot be filed until the following year (e.g., you cannot file 1099s for 2024 until it is 2025).
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Only Providers who earned $600+ will be eligible for 1099 filing
8. Filing Confirmation and Digital Copies
After filing, the Provider’s taxation status updates to "Filed" (green) or "Error" (red). For bulk filings, a ZIP file with processed 1099s will be sent via email.
Managers with access to the Taxation feature can download copies of the 1099 forms directly from the platform.
Providers will receive a copy of their 1099 form in their personal TalentDesk account under, My Settings > Profile > Tax.
9. Costs
TalentDesk charges $2 per 1099 filed, added to your monthly invoice.
Tips for a Smooth Filing Process:
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Enable the TIN validation setting early to catch errors.
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Review W9 forms well in advance.
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Contact TalentDesk support for assistance.