Being a freelancer (a “1099” or “1042” contractor) means that you are self-employed and providing services to Raise on behalf of College Board.
As a freelancer, you will provide Raise with applicable tax forms during onboarding and are responsible for managing your own services, including tracking your income and expenses.
For freelancers working in the United States, this classification impacts:
- Tax Withholding: Unlike W2 employees, taxes are not automatically withheld from your payments.
- You are responsible for paying your own taxes such as federal, state, and possibly local taxes.
- You will complete a Form W-9 during onboarding.
- Social Security and Medicare: You are responsible for contributions to Social Security and Medicare payments
- Year-End Tax Forms: At the end of the year, you will receive a 1099-NEC form from Raise if you earn $600 or more during the tax year.
For freelancers working Internationally, this classification impacts:
- Tax Withholding: You are responsible for filing your tax returns and for paying all taxes and governmental fees that apply to the services you provide. This includes all taxes, duties, and other governmental charges.
- If you are a US Citizen and submit your Form W-9, Raise will not withhold any federal, state, or local income or payroll taxes.
- If you are not a US Citizen and you submit a Form W-8, since your services are provided entirely outside of the United States, Raise will require you to sign a “Certificate of No U.S. Activities,” and will not withhold any tax.
Year-End Tax Forms:
- If you are a US Citizen, at the end of the year, you will receive a From 1099-NEC from Raise if you earn $600 or more during the tax year.
- If you are not a US Citizen, you will receive a Form 1042-S if you had taxes withheld on your payments.