When it comes to handling tax documents for providers, the approach depends on whether you're utilizing the Cloud Direct Pay system or managing payments on your own:
Using Cloud Direct Pay: If you're enrolled in Cloud Direct Pay, the platform simplifies the process by collecting W-9 forms from professionals on your behalf. This means you don't need to worry about gathering these tax documents yourself, as the system ensures compliance with tax regulations for payments made to independent contractors.
Handling Payments Yourself: In cases where you opt to pay professionals directly, you'll need to adhere to the presumption set forth in our Terms of Use that professionals are treated as independent contractors. This requires you to collect W-9 forms from the professionals to meet tax reporting requirements. However, if both you and the professional agree, you may instead collect W-4 forms before the assignment begins. This option is less typical and should be agreed upon by both parties in advance.
For Those Not Using Cloud Direct Pay: It's advisable to collect the necessary tax documents (typically W-9s for independent contractors) when the professional first arrives at your office. Since we do not keep these documents on file for those not enrolled in Cloud Direct Pay, and considering the professional might not be available for messaging later, it's most efficient to handle this at the beginning of your working relationship.