Grubhub is an online food delivery site that has its firm footing in America. The company has its headquarters in Chicago, with an employee strength of 2,773. It’s a subsidiary of just eat takeaway.com. Let’s learn about ‘How To Get A W2 From Grubhub?’.
How To Get A W2 From Grubhub?
The company has 36,000 restaurant partners and branches in 40,000 cities. The organization is best for new restaurants that want a good platform to showcase their cuisine. The company provides drivers so that delivery can be smooth. The company provides restaurants with an excellent platform. Restaurants can easily use the advantage of the online economy and can enhance their operations.
Before knowing the procedure of how to get w2 from the organization first the readers should know what it is. W2 also known as wage and tax statement is a form that is mandatory for every organization to provide to their staff. The document states the yearly stipend and taxes of the employees. The taxes are withdrawn from the employee’s cheques and are then submitted to the law.
The online food delivery Grubhub uses the method where every employee is an employer means that they have to complete their tasks on their own. Since it follows an independent employer system it does not provide a w-2 form instead they provide a 1099 form.
The 1099 form is also a form related to tax. Grub hub sends forms through postal addresses not via email. If the candidate wants the form through email he/she has to change the default settings on the company’s website.
The form will only be received by the candidate if the employee earns 6000 dollars annually.
Information Regarding The 1099 Form
Information that employee needs to fill on the website is as follows:-
- The candidate first has to fill in the company name.
- Then candidate’s tax identification number
- Candidate’s office address and activity code.
Before claiming the form the candidate has to provide proof of his/her income. In this case, the candidate has to state his/her earnings that are generated from the app and the 1099 form.
Income that is used for the 1099 form
The income that an employee can claim also comprises the tips which the employees get per order. The organization doesn’t take account of the tips but they stress including them in individual taxes.
If the driver decides not to submit the tips then it is considered a more serious offense. Not reporting will lead to the denial of the deed and lease. For example, in Covid-19 times candidates who showed their income with tips were granted relief compared to those who did not report it. The candidates are also offered discounts on other reliefs too.
Steps used for the acquirement of the form
- The candidate has to open his/her official company account
- The candidate will be asked to verify his/her email
- Opt for employee taxes when opening an account at the official website.
- The employee will get the form by opting for the tax deductions tab on the company’s website.
Taxes that employees have to pay
The candidates can pay their taxes in two forms either income tax or self-tax. Depending upon the area they are working. Mostly the self-taxes are 15.3%. if the employee works in an area where income tax is applicable then the candidate has to pay income tax along with the other taxes.
The employees need to file their tax returns, and the necessary documents that are needed are
- Schedule C
- 1044 form
The employees can also opt for software that can autofill all details.
How candidates will pay taxes?
Though the candidate has to pay taxes on the designated day he/she has to make the payments for an entire year, these payments are termed as quarterly taxes. If the w-2 form holder increases their hold then they can reduce these quarterly payments.
The organization does not take out taxes, the employees have to make payments. Generally, it is advised, money that is used for tax payments to put in different bank accounts to avoid any confusion later. If the candidate fails to pay the taxes he/she has to face consequences.
The candidates can set their tax percentages through the tax tracker. The software can give the idea to the employee, of the tax that he/she has to pay according to his/her income.
Tax Reductions: How To Get A W2 From Grubhub?
For the employees of GrubHub following are factors in which taxes are subtracted
Since it’s a food delivery platform, the main part of the organization is the drivers that deliver food from restaurants to the customer’s doorstep. The driver’s taxes are cut through the mileage. The taxes are subtracted from the distance traveled by the driver from the restaurant to the customer and then back to another restaurant. Or from one party to another. The tax will not be withdrawn from the distance between the candidate’s home to their day’s first and last stoppage. In 2023 the government has set a 65.5 cents per mile deduction.
Sometimes the Driver needs to add some accessories to his/her vehicle so that delivering food can be easier. Such as a drink holder or extra cart holder for holding. These accessories if used for the service will be counted and taxes will be withdrawn, but if the candidate does not use these additions for professional use then they will not be included in the taxes.
Mobile phone bills are also an essential part of tax subtraction. A fixed amount is deducted from the bill.
Most employees get a 20% tax subtraction on their income taxes. For example, if the employee is earning 10,000 dollars then 2000 dollars are deducted and only 8,000 is given to the employee.
Now We’ve learnt about ‘How To Get A W2 From Grubhub?’, Grub hub has excellently crafted the tax policy so that it is the same for every employee working. For employees along with taxes, the organization has also given certain benefits that can benefit employees. Since Grub hub follows an independent employer system it has reduced amounts in many taxes compared to the employees working for another organization.
Frequently Asked Questions
- How much does an employee need to earn before grub hub imposes tax?
The employee should be able to earn 20,000 dollars per year to be eligible for taxes and a w-2 form.