As a general rule of thumb, employers who hire virtual team members through Virtual PM Solutions shouldn't be responsible for filing 1099-MISC forms for their team members. This is one of the key benefits of paying virtual team members through our platform.
The talent we connect you with are independent contractors. As long as they are properly classified as such, you shouldn't be responsible for reporting payments on Form 1099-MISC. The secure platform that payments are made through, is considered a “third-party payment network.” As a result, Form 1099 reporting is our responsibility—not yours.
When applicable, we are required to report payments to independent contractors on Form 1099-K. That frees you from any responsibility to report on Form 1099-MISC, and we do not send Form 1099-MISC on behalf of our clients. We also require all persons who find work through our platform in the U.S. to submit Form W-9 to us.
That being said, it is your responsibility to correctly classify those who do work for you through Virtual PM Solutions as independent contractors, not as employees. Determining the proper classification of all of your remote workers is up to you, and you should refer to the IRS guidelines and other federal, state, and local regulations applicable to you for freelancers based in the United States.
If you have questions or concerns about any tax-related issues pertaining to hiring remote workers through our platform, we recommend consulting a tax professional.