Tax season

By

Lumanu Staff

May 3, 2024

Common Issues Influencers and Freelancers Face During Tax Season

There's an annual ritual dreaded by marketing freelancers and contractors as well as finance and accounting teams alike: tax season. While it's a necessary part of financial responsibility for any individual and business, the mere mention of taxes can induce headaches for all parties involved in the process. 

From ensuring that the appropriate paperwork (i.e. a marketing contractors W-9) is in the hands of the right people, to making sure the information is in the correct system, to appropriately issuing 1099 forms - navigating tax season can feel like a never ending process for all parties involved. 

Knowing this, let's delve into some of the biggest challenges that marketing contractors and finance and accounting teams are faced with during tax season. We want to equip you with a deeper understanding of what marketing contractors go through so your company can deliver a better experience to them, all while making the tax season less complicated and stressful for your accounting and finance teams.  

Collecting W9s and Issuing 1099s

Marketing creators and partners operating as independent marketing contractors or freelancers, must submit W-9 forms to every company that they are getting paid from. While most freelancers have this form saved and filled out, submitting it to each company that they are contracting with is an absolute must. And on the other end of this, the company must collect the W-9 and enter the contractors information into their system. 

In most cases, this is a manual and time consuming process for the accounting and finance teams to properly enter the information. And oftentimes, companies aren’t running a Taxpayer Identification Match (otherwise known as a TIN) against the contractor's information. This can lead to errors down the line when it comes to issuing the contractor their 1099 form at the end of the year. 

And speaking of 1099 forms, the hunt for 1099 forms for marketing contractors can sometimes feel like searching for buried treasure. Despite their importance in accurately reporting income, these forms can often be difficult to get from the company issuing them. Every company has a different process that they follow to first generate them and then send them out to recipients. Some send them out via email, others send them out via “snail” mail.  

We understand that issuing the 1099 forms is not easy for the companies issuing them - many hire outside contractors to prepare them which takes time and money. And the cost to prepare and issue a 1099 form is usually billed hourly by a CPA at anywhere between $100 and $400 an hour, showing that these costs can add up quickly for companies.  

As a marketing creator and partner, tracking down each client or employer to ensure you've received all necessary documentation can be a time-consuming task. Even in today’s fast-paced digital age, where everything seems just a click away, the process of obtaining 1099s can feel like you are back in 1990. This is because most companies still manually process and issue them to contractors, which means mistakes are bound to happen. While any mistake that is made by the company issuing the 1099 to a contractor may seem minor, even a minor mistake made issuing a 1099 (whether that be in issuing an incorrect payment amount or issuing the 1099 late) can turn out to be a major speed bump for the contractor to deal with when preparing their tax return. 

Record-Keeping Woes

Whether you're a marketing influencer or a member of the finance or accounting team that is working with marketing contractors, meticulous record-keeping is paramount. Record keeping includes how many hours have been worked and how much money has been paid out for the work. It’s very important that each party (i.e. the marketing contractor and the company) have records documenting the work that has been done to ensure accuracy in record keeping. 

Yet, amidst the whirlwind of projects, deadlines, and client meetings, maintaining organized financial records often takes a backseat. As tax season approaches, marketing contractors find themselves scrambling to piece together a year's worth of transactions, expenses, and invoices. The lack of a streamlined system can result in hours of sifting through emails, receipts, and bank statements—a frustrating endeavor that leaves many longing for a more efficient solution and creates lots of stress.

If you work with marketing contractors, we’d recommend that you advise them to keep track of the hours that they’ve worked and payments that they have received by month. This is done to potentially avoid (or at least reduce) the stress that comes every tax season. Having transparency on your financial information will help you have better control over your tax season. 

Understand Tax Reporting and Scheduling Intricacies 

Tax laws are notoriously complex, and deciphering which deductions and credits apply to your specific situation can be extremely overwhelming. For example, independent contractors typically file Schedule C to report income from a business operated as a sole proprietor. On Schedule C, you report your business income and then deduct allowable business expenses to arrive at your net profit or loss for the year. This net profit or loss is then included on your Form 1040, where it contributes to your overall taxable income. It's crucial to keep accurate records of all business income and expenses throughout the year to ensure proper reporting on Schedule C. 

And for marketing contractors, who likely fit into the profile of someone who would file Schedule C, navigating the intricacies of these nuances can be a daunting task. Without a thorough understanding of tax regulations or the guidance of a knowledgeable accountant, many find themselves second-guessing which deductions to claim or inadvertently missing out on valuable tax breaks.

While a company that works with marketing contractors and partners is not responsible for taking out taxes for payments made to contractors, a company can make it easier for those contractors that they work with to pay taxes. They can do this by clearly documenting how much money they have been paid and providing them this information in an on-time fashion when 1099 information is due to be sent to them. 

It is a wise idea for marketing contractors to consult with a tax advisor multiple times a year to let them know how much money they made and how much they are expecting to make during the rest of the year. Doing this allows a marketing contractor to potentially pay taxes on a quarterly basis to avoid a potentially large tax bill at the end of the year. 

Time-Consuming Processes

In an ideal world, filing taxes would be a swift and painless process. However, for creators and managers juggling multiple projects and responsibilities, finding the time to devote to tax preparation can be a major challenge. Amidst deadlines looming and creative endeavors demanding attention, carving out hours—or even days—to sift through financial documents and complete tax forms can feel like an insurmountable burden. The frustration of sacrificing precious time that could be spent on pursuing passions and projects only adds to the stress of tax season.

For companies that work with lots of marketing contractors and freelancers, understand that those contractors that work with you are likely feeling stressed about tax season as well. They not only need to continue to do their work as contractors, but they also need to worry about preparing and submitting their tax information by the tax deadline. You can make it easier for the contractors that you work with by making it your priority to deliver them their 1099’s as early as possible. 

In a recent survey that we took of over 500 marketing contractors, over 85% of them indicated that the overall payment experience (inclusive of receiving a 1099 form) impacts their decision making process around potentially working with a brand again in the future. The best way to ensure that you are delivering an experience that makes marketing contractors work with you in the future is to deliver them a strong payment experience.

How Lumanu Can Help: 

Lumanu is a platform designed to, among other things, simplify the end-of-year tax season stress. Lumanu not only helps make it easier for marketing contractors and freelancers to get the paperwork that they need at the end of the year, but we make it easier for businesses that use Lumanu to pay marketing contractors and freelancers to automate the tax paperwork process. 

And here's how Lumanu can help alleviate some of the frustrations typically associated with tax season:

Streamlined Income Tracking: Lumanu provides creators and influencers with a centralized platform to track their income from various sources, including brand partnerships, sponsored content, and affiliate marketing. Instead of sifting through countless emails and invoices, users can easily access a comprehensive overview of their earnings, making it simpler to report income accurately during tax season.

Integrated Expense and Income Reporting: Lumanu integrates with popular accounting software and tax preparation tools, streamlining the process of classifying expenses and income. By seamlessly syncing income and expense data with platforms like QuickBooks or Xero, Lumanu simplifies tax preparation, saving creators and influencers valuable time and effort.

Compliance Assistance: Staying compliant with tax regulations can be daunting, especially for those unfamiliar with the intricacies of tax law. Lumanu provides users with access to resources and guidance to ensure they understand their tax obligations and maximize available deductions and credits. Lumanu empowers creators and influencers to navigate tax season with confidence.

Automating 1099 forms: For businesses that use Lumanu, they will be able to save hours and potentially thousands of dollars when it comes time to prepare and issue 1099 forms. Lumanu handles the 1099 form preparation and issuing them which results in an enormous time and money savings. 

Conclusion: Navigating Tax Season with Resilience

Despite the myriad frustrations that accompany tax season for creators and managers, it's a necessary aspect of financial management and compliance. While the challenges may seem daunting, there are solutions available to you (like Lumanu) that can help streamline the end-of-year tax crunch for you. 

By approaching tax season with resilience and a proactive mindset, creators and managers can navigate the complexities of filing taxes with greater ease and confidence. After all, while tax season may be an inevitable annual occurrence, it doesn't have to be a source of endless frustration.

If you are interested in learning more about how Lumanu can help you simplify your annual tax season nightmare, set up time with our team here

There's an annual ritual dreaded by marketing freelancers and contractors as well as finance and accounting teams alike: tax season. While it's a necessary part of financial responsibility for any individual and business, the mere mention of taxes can induce headaches for all parties involved in the process. 

From ensuring that the appropriate paperwork (i.e. a marketing contractors W-9) is in the hands of the right people, to making sure the information is in the correct system, to appropriately issuing 1099 forms - navigating tax season can feel like a never ending process for all parties involved. 

Knowing this, let's delve into some of the biggest challenges that marketing contractors and finance and accounting teams are faced with during tax season. We want to equip you with a deeper understanding of what marketing contractors go through so your company can deliver a better experience to them, all while making the tax season less complicated and stressful for your accounting and finance teams.  

Collecting W9s and Issuing 1099s

Marketing creators and partners operating as independent marketing contractors or freelancers, must submit W-9 forms to every company that they are getting paid from. While most freelancers have this form saved and filled out, submitting it to each company that they are contracting with is an absolute must. And on the other end of this, the company must collect the W-9 and enter the contractors information into their system. 

In most cases, this is a manual and time consuming process for the accounting and finance teams to properly enter the information. And oftentimes, companies aren’t running a Taxpayer Identification Match (otherwise known as a TIN) against the contractor's information. This can lead to errors down the line when it comes to issuing the contractor their 1099 form at the end of the year. 

And speaking of 1099 forms, the hunt for 1099 forms for marketing contractors can sometimes feel like searching for buried treasure. Despite their importance in accurately reporting income, these forms can often be difficult to get from the company issuing them. Every company has a different process that they follow to first generate them and then send them out to recipients. Some send them out via email, others send them out via “snail” mail.  

We understand that issuing the 1099 forms is not easy for the companies issuing them - many hire outside contractors to prepare them which takes time and money. And the cost to prepare and issue a 1099 form is usually billed hourly by a CPA at anywhere between $100 and $400 an hour, showing that these costs can add up quickly for companies.  

As a marketing creator and partner, tracking down each client or employer to ensure you've received all necessary documentation can be a time-consuming task. Even in today’s fast-paced digital age, where everything seems just a click away, the process of obtaining 1099s can feel like you are back in 1990. This is because most companies still manually process and issue them to contractors, which means mistakes are bound to happen. While any mistake that is made by the company issuing the 1099 to a contractor may seem minor, even a minor mistake made issuing a 1099 (whether that be in issuing an incorrect payment amount or issuing the 1099 late) can turn out to be a major speed bump for the contractor to deal with when preparing their tax return. 

Record-Keeping Woes

Whether you're a marketing influencer or a member of the finance or accounting team that is working with marketing contractors, meticulous record-keeping is paramount. Record keeping includes how many hours have been worked and how much money has been paid out for the work. It’s very important that each party (i.e. the marketing contractor and the company) have records documenting the work that has been done to ensure accuracy in record keeping. 

Yet, amidst the whirlwind of projects, deadlines, and client meetings, maintaining organized financial records often takes a backseat. As tax season approaches, marketing contractors find themselves scrambling to piece together a year's worth of transactions, expenses, and invoices. The lack of a streamlined system can result in hours of sifting through emails, receipts, and bank statements—a frustrating endeavor that leaves many longing for a more efficient solution and creates lots of stress.

If you work with marketing contractors, we’d recommend that you advise them to keep track of the hours that they’ve worked and payments that they have received by month. This is done to potentially avoid (or at least reduce) the stress that comes every tax season. Having transparency on your financial information will help you have better control over your tax season. 

Understand Tax Reporting and Scheduling Intricacies 

Tax laws are notoriously complex, and deciphering which deductions and credits apply to your specific situation can be extremely overwhelming. For example, independent contractors typically file Schedule C to report income from a business operated as a sole proprietor. On Schedule C, you report your business income and then deduct allowable business expenses to arrive at your net profit or loss for the year. This net profit or loss is then included on your Form 1040, where it contributes to your overall taxable income. It's crucial to keep accurate records of all business income and expenses throughout the year to ensure proper reporting on Schedule C. 

And for marketing contractors, who likely fit into the profile of someone who would file Schedule C, navigating the intricacies of these nuances can be a daunting task. Without a thorough understanding of tax regulations or the guidance of a knowledgeable accountant, many find themselves second-guessing which deductions to claim or inadvertently missing out on valuable tax breaks.

While a company that works with marketing contractors and partners is not responsible for taking out taxes for payments made to contractors, a company can make it easier for those contractors that they work with to pay taxes. They can do this by clearly documenting how much money they have been paid and providing them this information in an on-time fashion when 1099 information is due to be sent to them. 

It is a wise idea for marketing contractors to consult with a tax advisor multiple times a year to let them know how much money they made and how much they are expecting to make during the rest of the year. Doing this allows a marketing contractor to potentially pay taxes on a quarterly basis to avoid a potentially large tax bill at the end of the year. 

Time-Consuming Processes

In an ideal world, filing taxes would be a swift and painless process. However, for creators and managers juggling multiple projects and responsibilities, finding the time to devote to tax preparation can be a major challenge. Amidst deadlines looming and creative endeavors demanding attention, carving out hours—or even days—to sift through financial documents and complete tax forms can feel like an insurmountable burden. The frustration of sacrificing precious time that could be spent on pursuing passions and projects only adds to the stress of tax season.

For companies that work with lots of marketing contractors and freelancers, understand that those contractors that work with you are likely feeling stressed about tax season as well. They not only need to continue to do their work as contractors, but they also need to worry about preparing and submitting their tax information by the tax deadline. You can make it easier for the contractors that you work with by making it your priority to deliver them their 1099’s as early as possible. 

In a recent survey that we took of over 500 marketing contractors, over 85% of them indicated that the overall payment experience (inclusive of receiving a 1099 form) impacts their decision making process around potentially working with a brand again in the future. The best way to ensure that you are delivering an experience that makes marketing contractors work with you in the future is to deliver them a strong payment experience.

How Lumanu Can Help: 

Lumanu is a platform designed to, among other things, simplify the end-of-year tax season stress. Lumanu not only helps make it easier for marketing contractors and freelancers to get the paperwork that they need at the end of the year, but we make it easier for businesses that use Lumanu to pay marketing contractors and freelancers to automate the tax paperwork process. 

And here's how Lumanu can help alleviate some of the frustrations typically associated with tax season:

Streamlined Income Tracking: Lumanu provides creators and influencers with a centralized platform to track their income from various sources, including brand partnerships, sponsored content, and affiliate marketing. Instead of sifting through countless emails and invoices, users can easily access a comprehensive overview of their earnings, making it simpler to report income accurately during tax season.

Integrated Expense and Income Reporting: Lumanu integrates with popular accounting software and tax preparation tools, streamlining the process of classifying expenses and income. By seamlessly syncing income and expense data with platforms like QuickBooks or Xero, Lumanu simplifies tax preparation, saving creators and influencers valuable time and effort.

Compliance Assistance: Staying compliant with tax regulations can be daunting, especially for those unfamiliar with the intricacies of tax law. Lumanu provides users with access to resources and guidance to ensure they understand their tax obligations and maximize available deductions and credits. Lumanu empowers creators and influencers to navigate tax season with confidence.

Automating 1099 forms: For businesses that use Lumanu, they will be able to save hours and potentially thousands of dollars when it comes time to prepare and issue 1099 forms. Lumanu handles the 1099 form preparation and issuing them which results in an enormous time and money savings. 

Conclusion: Navigating Tax Season with Resilience

Despite the myriad frustrations that accompany tax season for creators and managers, it's a necessary aspect of financial management and compliance. While the challenges may seem daunting, there are solutions available to you (like Lumanu) that can help streamline the end-of-year tax crunch for you. 

By approaching tax season with resilience and a proactive mindset, creators and managers can navigate the complexities of filing taxes with greater ease and confidence. After all, while tax season may be an inevitable annual occurrence, it doesn't have to be a source of endless frustration.

If you are interested in learning more about how Lumanu can help you simplify your annual tax season nightmare, set up time with our team here

There's an annual ritual dreaded by marketing freelancers and contractors as well as finance and accounting teams alike: tax season. While it's a necessary part of financial responsibility for any individual and business, the mere mention of taxes can induce headaches for all parties involved in the process. 

From ensuring that the appropriate paperwork (i.e. a marketing contractors W-9) is in the hands of the right people, to making sure the information is in the correct system, to appropriately issuing 1099 forms - navigating tax season can feel like a never ending process for all parties involved. 

Knowing this, let's delve into some of the biggest challenges that marketing contractors and finance and accounting teams are faced with during tax season. We want to equip you with a deeper understanding of what marketing contractors go through so your company can deliver a better experience to them, all while making the tax season less complicated and stressful for your accounting and finance teams.  

Collecting W9s and Issuing 1099s

Marketing creators and partners operating as independent marketing contractors or freelancers, must submit W-9 forms to every company that they are getting paid from. While most freelancers have this form saved and filled out, submitting it to each company that they are contracting with is an absolute must. And on the other end of this, the company must collect the W-9 and enter the contractors information into their system. 

In most cases, this is a manual and time consuming process for the accounting and finance teams to properly enter the information. And oftentimes, companies aren’t running a Taxpayer Identification Match (otherwise known as a TIN) against the contractor's information. This can lead to errors down the line when it comes to issuing the contractor their 1099 form at the end of the year. 

And speaking of 1099 forms, the hunt for 1099 forms for marketing contractors can sometimes feel like searching for buried treasure. Despite their importance in accurately reporting income, these forms can often be difficult to get from the company issuing them. Every company has a different process that they follow to first generate them and then send them out to recipients. Some send them out via email, others send them out via “snail” mail.  

We understand that issuing the 1099 forms is not easy for the companies issuing them - many hire outside contractors to prepare them which takes time and money. And the cost to prepare and issue a 1099 form is usually billed hourly by a CPA at anywhere between $100 and $400 an hour, showing that these costs can add up quickly for companies.  

As a marketing creator and partner, tracking down each client or employer to ensure you've received all necessary documentation can be a time-consuming task. Even in today’s fast-paced digital age, where everything seems just a click away, the process of obtaining 1099s can feel like you are back in 1990. This is because most companies still manually process and issue them to contractors, which means mistakes are bound to happen. While any mistake that is made by the company issuing the 1099 to a contractor may seem minor, even a minor mistake made issuing a 1099 (whether that be in issuing an incorrect payment amount or issuing the 1099 late) can turn out to be a major speed bump for the contractor to deal with when preparing their tax return. 

Record-Keeping Woes

Whether you're a marketing influencer or a member of the finance or accounting team that is working with marketing contractors, meticulous record-keeping is paramount. Record keeping includes how many hours have been worked and how much money has been paid out for the work. It’s very important that each party (i.e. the marketing contractor and the company) have records documenting the work that has been done to ensure accuracy in record keeping. 

Yet, amidst the whirlwind of projects, deadlines, and client meetings, maintaining organized financial records often takes a backseat. As tax season approaches, marketing contractors find themselves scrambling to piece together a year's worth of transactions, expenses, and invoices. The lack of a streamlined system can result in hours of sifting through emails, receipts, and bank statements—a frustrating endeavor that leaves many longing for a more efficient solution and creates lots of stress.

If you work with marketing contractors, we’d recommend that you advise them to keep track of the hours that they’ve worked and payments that they have received by month. This is done to potentially avoid (or at least reduce) the stress that comes every tax season. Having transparency on your financial information will help you have better control over your tax season. 

Understand Tax Reporting and Scheduling Intricacies 

Tax laws are notoriously complex, and deciphering which deductions and credits apply to your specific situation can be extremely overwhelming. For example, independent contractors typically file Schedule C to report income from a business operated as a sole proprietor. On Schedule C, you report your business income and then deduct allowable business expenses to arrive at your net profit or loss for the year. This net profit or loss is then included on your Form 1040, where it contributes to your overall taxable income. It's crucial to keep accurate records of all business income and expenses throughout the year to ensure proper reporting on Schedule C. 

And for marketing contractors, who likely fit into the profile of someone who would file Schedule C, navigating the intricacies of these nuances can be a daunting task. Without a thorough understanding of tax regulations or the guidance of a knowledgeable accountant, many find themselves second-guessing which deductions to claim or inadvertently missing out on valuable tax breaks.

While a company that works with marketing contractors and partners is not responsible for taking out taxes for payments made to contractors, a company can make it easier for those contractors that they work with to pay taxes. They can do this by clearly documenting how much money they have been paid and providing them this information in an on-time fashion when 1099 information is due to be sent to them. 

It is a wise idea for marketing contractors to consult with a tax advisor multiple times a year to let them know how much money they made and how much they are expecting to make during the rest of the year. Doing this allows a marketing contractor to potentially pay taxes on a quarterly basis to avoid a potentially large tax bill at the end of the year. 

Time-Consuming Processes

In an ideal world, filing taxes would be a swift and painless process. However, for creators and managers juggling multiple projects and responsibilities, finding the time to devote to tax preparation can be a major challenge. Amidst deadlines looming and creative endeavors demanding attention, carving out hours—or even days—to sift through financial documents and complete tax forms can feel like an insurmountable burden. The frustration of sacrificing precious time that could be spent on pursuing passions and projects only adds to the stress of tax season.

For companies that work with lots of marketing contractors and freelancers, understand that those contractors that work with you are likely feeling stressed about tax season as well. They not only need to continue to do their work as contractors, but they also need to worry about preparing and submitting their tax information by the tax deadline. You can make it easier for the contractors that you work with by making it your priority to deliver them their 1099’s as early as possible. 

In a recent survey that we took of over 500 marketing contractors, over 85% of them indicated that the overall payment experience (inclusive of receiving a 1099 form) impacts their decision making process around potentially working with a brand again in the future. The best way to ensure that you are delivering an experience that makes marketing contractors work with you in the future is to deliver them a strong payment experience.

How Lumanu Can Help: 

Lumanu is a platform designed to, among other things, simplify the end-of-year tax season stress. Lumanu not only helps make it easier for marketing contractors and freelancers to get the paperwork that they need at the end of the year, but we make it easier for businesses that use Lumanu to pay marketing contractors and freelancers to automate the tax paperwork process. 

And here's how Lumanu can help alleviate some of the frustrations typically associated with tax season:

Streamlined Income Tracking: Lumanu provides creators and influencers with a centralized platform to track their income from various sources, including brand partnerships, sponsored content, and affiliate marketing. Instead of sifting through countless emails and invoices, users can easily access a comprehensive overview of their earnings, making it simpler to report income accurately during tax season.

Integrated Expense and Income Reporting: Lumanu integrates with popular accounting software and tax preparation tools, streamlining the process of classifying expenses and income. By seamlessly syncing income and expense data with platforms like QuickBooks or Xero, Lumanu simplifies tax preparation, saving creators and influencers valuable time and effort.

Compliance Assistance: Staying compliant with tax regulations can be daunting, especially for those unfamiliar with the intricacies of tax law. Lumanu provides users with access to resources and guidance to ensure they understand their tax obligations and maximize available deductions and credits. Lumanu empowers creators and influencers to navigate tax season with confidence.

Automating 1099 forms: For businesses that use Lumanu, they will be able to save hours and potentially thousands of dollars when it comes time to prepare and issue 1099 forms. Lumanu handles the 1099 form preparation and issuing them which results in an enormous time and money savings. 

Conclusion: Navigating Tax Season with Resilience

Despite the myriad frustrations that accompany tax season for creators and managers, it's a necessary aspect of financial management and compliance. While the challenges may seem daunting, there are solutions available to you (like Lumanu) that can help streamline the end-of-year tax crunch for you. 

By approaching tax season with resilience and a proactive mindset, creators and managers can navigate the complexities of filing taxes with greater ease and confidence. After all, while tax season may be an inevitable annual occurrence, it doesn't have to be a source of endless frustration.

If you are interested in learning more about how Lumanu can help you simplify your annual tax season nightmare, set up time with our team here

There's an annual ritual dreaded by marketing freelancers and contractors as well as finance and accounting teams alike: tax season. While it's a necessary part of financial responsibility for any individual and business, the mere mention of taxes can induce headaches for all parties involved in the process. 

From ensuring that the appropriate paperwork (i.e. a marketing contractors W-9) is in the hands of the right people, to making sure the information is in the correct system, to appropriately issuing 1099 forms - navigating tax season can feel like a never ending process for all parties involved. 

Knowing this, let's delve into some of the biggest challenges that marketing contractors and finance and accounting teams are faced with during tax season. We want to equip you with a deeper understanding of what marketing contractors go through so your company can deliver a better experience to them, all while making the tax season less complicated and stressful for your accounting and finance teams.  

Collecting W9s and Issuing 1099s

Marketing creators and partners operating as independent marketing contractors or freelancers, must submit W-9 forms to every company that they are getting paid from. While most freelancers have this form saved and filled out, submitting it to each company that they are contracting with is an absolute must. And on the other end of this, the company must collect the W-9 and enter the contractors information into their system. 

In most cases, this is a manual and time consuming process for the accounting and finance teams to properly enter the information. And oftentimes, companies aren’t running a Taxpayer Identification Match (otherwise known as a TIN) against the contractor's information. This can lead to errors down the line when it comes to issuing the contractor their 1099 form at the end of the year. 

And speaking of 1099 forms, the hunt for 1099 forms for marketing contractors can sometimes feel like searching for buried treasure. Despite their importance in accurately reporting income, these forms can often be difficult to get from the company issuing them. Every company has a different process that they follow to first generate them and then send them out to recipients. Some send them out via email, others send them out via “snail” mail.  

We understand that issuing the 1099 forms is not easy for the companies issuing them - many hire outside contractors to prepare them which takes time and money. And the cost to prepare and issue a 1099 form is usually billed hourly by a CPA at anywhere between $100 and $400 an hour, showing that these costs can add up quickly for companies.  

As a marketing creator and partner, tracking down each client or employer to ensure you've received all necessary documentation can be a time-consuming task. Even in today’s fast-paced digital age, where everything seems just a click away, the process of obtaining 1099s can feel like you are back in 1990. This is because most companies still manually process and issue them to contractors, which means mistakes are bound to happen. While any mistake that is made by the company issuing the 1099 to a contractor may seem minor, even a minor mistake made issuing a 1099 (whether that be in issuing an incorrect payment amount or issuing the 1099 late) can turn out to be a major speed bump for the contractor to deal with when preparing their tax return. 

Record-Keeping Woes

Whether you're a marketing influencer or a member of the finance or accounting team that is working with marketing contractors, meticulous record-keeping is paramount. Record keeping includes how many hours have been worked and how much money has been paid out for the work. It’s very important that each party (i.e. the marketing contractor and the company) have records documenting the work that has been done to ensure accuracy in record keeping. 

Yet, amidst the whirlwind of projects, deadlines, and client meetings, maintaining organized financial records often takes a backseat. As tax season approaches, marketing contractors find themselves scrambling to piece together a year's worth of transactions, expenses, and invoices. The lack of a streamlined system can result in hours of sifting through emails, receipts, and bank statements—a frustrating endeavor that leaves many longing for a more efficient solution and creates lots of stress.

If you work with marketing contractors, we’d recommend that you advise them to keep track of the hours that they’ve worked and payments that they have received by month. This is done to potentially avoid (or at least reduce) the stress that comes every tax season. Having transparency on your financial information will help you have better control over your tax season. 

Understand Tax Reporting and Scheduling Intricacies 

Tax laws are notoriously complex, and deciphering which deductions and credits apply to your specific situation can be extremely overwhelming. For example, independent contractors typically file Schedule C to report income from a business operated as a sole proprietor. On Schedule C, you report your business income and then deduct allowable business expenses to arrive at your net profit or loss for the year. This net profit or loss is then included on your Form 1040, where it contributes to your overall taxable income. It's crucial to keep accurate records of all business income and expenses throughout the year to ensure proper reporting on Schedule C. 

And for marketing contractors, who likely fit into the profile of someone who would file Schedule C, navigating the intricacies of these nuances can be a daunting task. Without a thorough understanding of tax regulations or the guidance of a knowledgeable accountant, many find themselves second-guessing which deductions to claim or inadvertently missing out on valuable tax breaks.

While a company that works with marketing contractors and partners is not responsible for taking out taxes for payments made to contractors, a company can make it easier for those contractors that they work with to pay taxes. They can do this by clearly documenting how much money they have been paid and providing them this information in an on-time fashion when 1099 information is due to be sent to them. 

It is a wise idea for marketing contractors to consult with a tax advisor multiple times a year to let them know how much money they made and how much they are expecting to make during the rest of the year. Doing this allows a marketing contractor to potentially pay taxes on a quarterly basis to avoid a potentially large tax bill at the end of the year. 

Time-Consuming Processes

In an ideal world, filing taxes would be a swift and painless process. However, for creators and managers juggling multiple projects and responsibilities, finding the time to devote to tax preparation can be a major challenge. Amidst deadlines looming and creative endeavors demanding attention, carving out hours—or even days—to sift through financial documents and complete tax forms can feel like an insurmountable burden. The frustration of sacrificing precious time that could be spent on pursuing passions and projects only adds to the stress of tax season.

For companies that work with lots of marketing contractors and freelancers, understand that those contractors that work with you are likely feeling stressed about tax season as well. They not only need to continue to do their work as contractors, but they also need to worry about preparing and submitting their tax information by the tax deadline. You can make it easier for the contractors that you work with by making it your priority to deliver them their 1099’s as early as possible. 

In a recent survey that we took of over 500 marketing contractors, over 85% of them indicated that the overall payment experience (inclusive of receiving a 1099 form) impacts their decision making process around potentially working with a brand again in the future. The best way to ensure that you are delivering an experience that makes marketing contractors work with you in the future is to deliver them a strong payment experience.

How Lumanu Can Help: 

Lumanu is a platform designed to, among other things, simplify the end-of-year tax season stress. Lumanu not only helps make it easier for marketing contractors and freelancers to get the paperwork that they need at the end of the year, but we make it easier for businesses that use Lumanu to pay marketing contractors and freelancers to automate the tax paperwork process. 

And here's how Lumanu can help alleviate some of the frustrations typically associated with tax season:

Streamlined Income Tracking: Lumanu provides creators and influencers with a centralized platform to track their income from various sources, including brand partnerships, sponsored content, and affiliate marketing. Instead of sifting through countless emails and invoices, users can easily access a comprehensive overview of their earnings, making it simpler to report income accurately during tax season.

Integrated Expense and Income Reporting: Lumanu integrates with popular accounting software and tax preparation tools, streamlining the process of classifying expenses and income. By seamlessly syncing income and expense data with platforms like QuickBooks or Xero, Lumanu simplifies tax preparation, saving creators and influencers valuable time and effort.

Compliance Assistance: Staying compliant with tax regulations can be daunting, especially for those unfamiliar with the intricacies of tax law. Lumanu provides users with access to resources and guidance to ensure they understand their tax obligations and maximize available deductions and credits. Lumanu empowers creators and influencers to navigate tax season with confidence.

Automating 1099 forms: For businesses that use Lumanu, they will be able to save hours and potentially thousands of dollars when it comes time to prepare and issue 1099 forms. Lumanu handles the 1099 form preparation and issuing them which results in an enormous time and money savings. 

Conclusion: Navigating Tax Season with Resilience

Despite the myriad frustrations that accompany tax season for creators and managers, it's a necessary aspect of financial management and compliance. While the challenges may seem daunting, there are solutions available to you (like Lumanu) that can help streamline the end-of-year tax crunch for you. 

By approaching tax season with resilience and a proactive mindset, creators and managers can navigate the complexities of filing taxes with greater ease and confidence. After all, while tax season may be an inevitable annual occurrence, it doesn't have to be a source of endless frustration.

If you are interested in learning more about how Lumanu can help you simplify your annual tax season nightmare, set up time with our team here

There's an annual ritual dreaded by marketing freelancers and contractors as well as finance and accounting teams alike: tax season. While it's a necessary part of financial responsibility for any individual and business, the mere mention of taxes can induce headaches for all parties involved in the process. 

From ensuring that the appropriate paperwork (i.e. a marketing contractors W-9) is in the hands of the right people, to making sure the information is in the correct system, to appropriately issuing 1099 forms - navigating tax season can feel like a never ending process for all parties involved. 

Knowing this, let's delve into some of the biggest challenges that marketing contractors and finance and accounting teams are faced with during tax season. We want to equip you with a deeper understanding of what marketing contractors go through so your company can deliver a better experience to them, all while making the tax season less complicated and stressful for your accounting and finance teams.  

Collecting W9s and Issuing 1099s

Marketing creators and partners operating as independent marketing contractors or freelancers, must submit W-9 forms to every company that they are getting paid from. While most freelancers have this form saved and filled out, submitting it to each company that they are contracting with is an absolute must. And on the other end of this, the company must collect the W-9 and enter the contractors information into their system. 

In most cases, this is a manual and time consuming process for the accounting and finance teams to properly enter the information. And oftentimes, companies aren’t running a Taxpayer Identification Match (otherwise known as a TIN) against the contractor's information. This can lead to errors down the line when it comes to issuing the contractor their 1099 form at the end of the year. 

And speaking of 1099 forms, the hunt for 1099 forms for marketing contractors can sometimes feel like searching for buried treasure. Despite their importance in accurately reporting income, these forms can often be difficult to get from the company issuing them. Every company has a different process that they follow to first generate them and then send them out to recipients. Some send them out via email, others send them out via “snail” mail.  

We understand that issuing the 1099 forms is not easy for the companies issuing them - many hire outside contractors to prepare them which takes time and money. And the cost to prepare and issue a 1099 form is usually billed hourly by a CPA at anywhere between $100 and $400 an hour, showing that these costs can add up quickly for companies.  

As a marketing creator and partner, tracking down each client or employer to ensure you've received all necessary documentation can be a time-consuming task. Even in today’s fast-paced digital age, where everything seems just a click away, the process of obtaining 1099s can feel like you are back in 1990. This is because most companies still manually process and issue them to contractors, which means mistakes are bound to happen. While any mistake that is made by the company issuing the 1099 to a contractor may seem minor, even a minor mistake made issuing a 1099 (whether that be in issuing an incorrect payment amount or issuing the 1099 late) can turn out to be a major speed bump for the contractor to deal with when preparing their tax return. 

Record-Keeping Woes

Whether you're a marketing influencer or a member of the finance or accounting team that is working with marketing contractors, meticulous record-keeping is paramount. Record keeping includes how many hours have been worked and how much money has been paid out for the work. It’s very important that each party (i.e. the marketing contractor and the company) have records documenting the work that has been done to ensure accuracy in record keeping. 

Yet, amidst the whirlwind of projects, deadlines, and client meetings, maintaining organized financial records often takes a backseat. As tax season approaches, marketing contractors find themselves scrambling to piece together a year's worth of transactions, expenses, and invoices. The lack of a streamlined system can result in hours of sifting through emails, receipts, and bank statements—a frustrating endeavor that leaves many longing for a more efficient solution and creates lots of stress.

If you work with marketing contractors, we’d recommend that you advise them to keep track of the hours that they’ve worked and payments that they have received by month. This is done to potentially avoid (or at least reduce) the stress that comes every tax season. Having transparency on your financial information will help you have better control over your tax season. 

Understand Tax Reporting and Scheduling Intricacies 

Tax laws are notoriously complex, and deciphering which deductions and credits apply to your specific situation can be extremely overwhelming. For example, independent contractors typically file Schedule C to report income from a business operated as a sole proprietor. On Schedule C, you report your business income and then deduct allowable business expenses to arrive at your net profit or loss for the year. This net profit or loss is then included on your Form 1040, where it contributes to your overall taxable income. It's crucial to keep accurate records of all business income and expenses throughout the year to ensure proper reporting on Schedule C. 

And for marketing contractors, who likely fit into the profile of someone who would file Schedule C, navigating the intricacies of these nuances can be a daunting task. Without a thorough understanding of tax regulations or the guidance of a knowledgeable accountant, many find themselves second-guessing which deductions to claim or inadvertently missing out on valuable tax breaks.

While a company that works with marketing contractors and partners is not responsible for taking out taxes for payments made to contractors, a company can make it easier for those contractors that they work with to pay taxes. They can do this by clearly documenting how much money they have been paid and providing them this information in an on-time fashion when 1099 information is due to be sent to them. 

It is a wise idea for marketing contractors to consult with a tax advisor multiple times a year to let them know how much money they made and how much they are expecting to make during the rest of the year. Doing this allows a marketing contractor to potentially pay taxes on a quarterly basis to avoid a potentially large tax bill at the end of the year. 

Time-Consuming Processes

In an ideal world, filing taxes would be a swift and painless process. However, for creators and managers juggling multiple projects and responsibilities, finding the time to devote to tax preparation can be a major challenge. Amidst deadlines looming and creative endeavors demanding attention, carving out hours—or even days—to sift through financial documents and complete tax forms can feel like an insurmountable burden. The frustration of sacrificing precious time that could be spent on pursuing passions and projects only adds to the stress of tax season.

For companies that work with lots of marketing contractors and freelancers, understand that those contractors that work with you are likely feeling stressed about tax season as well. They not only need to continue to do their work as contractors, but they also need to worry about preparing and submitting their tax information by the tax deadline. You can make it easier for the contractors that you work with by making it your priority to deliver them their 1099’s as early as possible. 

In a recent survey that we took of over 500 marketing contractors, over 85% of them indicated that the overall payment experience (inclusive of receiving a 1099 form) impacts their decision making process around potentially working with a brand again in the future. The best way to ensure that you are delivering an experience that makes marketing contractors work with you in the future is to deliver them a strong payment experience.

How Lumanu Can Help: 

Lumanu is a platform designed to, among other things, simplify the end-of-year tax season stress. Lumanu not only helps make it easier for marketing contractors and freelancers to get the paperwork that they need at the end of the year, but we make it easier for businesses that use Lumanu to pay marketing contractors and freelancers to automate the tax paperwork process. 

And here's how Lumanu can help alleviate some of the frustrations typically associated with tax season:

Streamlined Income Tracking: Lumanu provides creators and influencers with a centralized platform to track their income from various sources, including brand partnerships, sponsored content, and affiliate marketing. Instead of sifting through countless emails and invoices, users can easily access a comprehensive overview of their earnings, making it simpler to report income accurately during tax season.

Integrated Expense and Income Reporting: Lumanu integrates with popular accounting software and tax preparation tools, streamlining the process of classifying expenses and income. By seamlessly syncing income and expense data with platforms like QuickBooks or Xero, Lumanu simplifies tax preparation, saving creators and influencers valuable time and effort.

Compliance Assistance: Staying compliant with tax regulations can be daunting, especially for those unfamiliar with the intricacies of tax law. Lumanu provides users with access to resources and guidance to ensure they understand their tax obligations and maximize available deductions and credits. Lumanu empowers creators and influencers to navigate tax season with confidence.

Automating 1099 forms: For businesses that use Lumanu, they will be able to save hours and potentially thousands of dollars when it comes time to prepare and issue 1099 forms. Lumanu handles the 1099 form preparation and issuing them which results in an enormous time and money savings. 

Conclusion: Navigating Tax Season with Resilience

Despite the myriad frustrations that accompany tax season for creators and managers, it's a necessary aspect of financial management and compliance. While the challenges may seem daunting, there are solutions available to you (like Lumanu) that can help streamline the end-of-year tax crunch for you. 

By approaching tax season with resilience and a proactive mindset, creators and managers can navigate the complexities of filing taxes with greater ease and confidence. After all, while tax season may be an inevitable annual occurrence, it doesn't have to be a source of endless frustration.

If you are interested in learning more about how Lumanu can help you simplify your annual tax season nightmare, set up time with our team here

By

Lumanu Staff

May 3, 2024

© 2024 Lumanu, Inc. All Rights Reserved.

Lumanu, Inc. is a financial technology company and not a bank. Lumanu accounts are provided by i3 Bank, Member FDIC.

© 2024 Lumanu, Inc. All Rights Reserved.

Lumanu, Inc. is a financial technology company and not a bank. Lumanu accounts are provided by i3 Bank, Member FDIC.

© 2024 Lumanu, Inc. All Rights Reserved.

Lumanu, Inc. is a financial technology company and not a bank. Lumanu accounts are provided by i3 Bank, Member FDIC.

© 2024 Lumanu, Inc. All Rights Reserved.

Lumanu, Inc. is a financial technology company and not a bank. Lumanu accounts are provided by i3 Bank, Member FDIC.

© 2024 Lumanu, Inc. All Rights Reserved.

Lumanu, Inc. is a financial technology company and not a bank. Lumanu accounts are provided by i3 Bank, Member FDIC.