i Ditch RATES,FEES,TAXES AND PAYMENT INFORMATION
Before you use the iDitch platform,iDitch App, iDitch.com and other iDitch services, Kindly read through these Important Rates, Fees, Taxes and Payment Account terms, which contains information about rates, fees, taxes, payments and other costs, as applicable.
The iDitch Technologies Inc charges all gigs that are activated on our iDitch portal processing fees for the use of our platform. Our fees are one tenth (10%) of the percentage of the compensation as payment for the gig between the client (service receiver) and the Artisan (service provider).
Our fees are subject to change anytime. We at iDitch reserve the right to change our fees with a thirty days notice to Artisans and clients registered on the iDitch platform.
iDitch issues our official iDitch accessories in form of the iDitch t-shirts, iDitch capes, iDitch Aprons, iDitch slippers, iDitch towels, iDitch tote bags and other packages, these items can be purchased at the iDitch store @ https://shop.spreadshirt.com/iDitch When an Artisans account is approved and activated, The Artisan is expected to adhere to the formal iDitch work dress code. Please refer to the Artisans Work Dress Code on the iDitch User Agreement Page. When an Artisan procures these iDitch products, the Artisans MUST use these iDitch accessories in the process and during the undertaking of a gig.
The iDitch accessories may also be purchased by the general public far and wide. They are of great quality and makes a striking fashion statement for the avid fashionistas and fashion forward individuals.
The iDitch rates in the United States and Canada are solely set by and between the Artisans (service provider) and the clients (service receivers). Rates differ from locations and from provinces and states. iDitch is not a part or partaker of the negotiating process and procedure between the Artisan and the Customer, in the deliberations and
agreement of the amount of what a gig would cost.
Do iDitch Artisans Get A 1099?
iDitch Artisans are described as self-employed “Associate” and fall under 1099 tax rules. For artisan services, this falls under 1099-K rules and any other payouts would land under the 1099-MISC rules. These other payouts could include, bonuses and more. You can check out your needed Artisan tax information by logging into your iDitch associate portal.
How Do iDitch Artisans Pay Taxes
iDitch classifies its Artisans as independent contractors. An independent contractor is a non-employee who is running their own business. iDitch DOES NOT provide you with any employee benefits like health insurance or vacation. It also DOES NOT withhold any taxes from your compensation.
Every year, iDitch will file IRS Form 1099-MISC and/or 1099-K with the IRS and your state tax agency reporting how much it paid you. This applies if you were paid over $600 during the year.
You need to report this income on your tax return and pay income tax and self-employment tax (Social Security and Medicare tax) on the net profit you earn from gigs done on the iDitch platform.
Of course, you can deduct certain business expenses.
For Canadian iDitch Artisans Kindly click on the link below
Do You Have To Report iDitch Income?
For the majority of you, the answer is “yes.” If your net earnings from iDitch exceeds $400, you must report that income. You will be required to file a Form 1040 and attach Schedule C and Schedule SE to report your iDitch income.
If you’re not required to file an income tax return and your net earnings from iDitch are less than $400, you ARE NOT required to report your iDitch income.
I’m An iDitch Artisan. What Taxes Do I Pay?
Let’s say you are a sole proprietor. It’s how the vast majority of self-employed people, including iDitch Artisans, operate their businesses.
When you’re a sole proprietor, you and your business are one and the same for tax purposes. You don’t pay taxes or file tax returns separately for your sole proprietorship. Instead, you report the income you earn on your own personal tax return, IRS Form 1040.
To show whether you have a profit or loss from your sole proprietorship, you file IRS Schedule C, Profit or Loss From
Business, with your return. On this form you list all your business income and deductible expenses. You only pay tax on the profit you have left after you subtract all your expenses from your business income.
When you’re a sole proprietor, you must pay self-employment taxes on your net income. You have to also pay your income taxes, too. This is so even though you are of retirement age.
Self-employment taxes are the Social Security and Medicare taxes sole proprietors pay. When you’re an independent contractor, you have to pay all your Social Security and Medicare taxes out of your own pocket.
iDitch would not pay half of them for you (employers must pay half of these taxes for their employees, but not for contractors). These taxes are substantial: a flat 15.3 percent tax on your first $118,500 in net self-employment income (in 2015). You file IRS Form SE with your tax return to report and pay these taxes.
What Expenses Can iDitch Artisans Deduct?
It’s very important for you to keep track of all the deductible expenses you incur throughout the year, since they will decrease the amount of profit you’ll have to pay tax on.
Since your business is a specialty business with tools, your biggest deduction will be your tools expenses. You can deduct these one way: You can deduct your actual expenses like repairs and services of your tools or equipments, depreciation, lease expenses if you lease any equipments or tools, etc.
Whatever method you use, it is vital that you keep track of your business records. You can use a record or book keeping app or an old fashioned paper log, which requires quite a bit of manual work.
iDitch Artisans Tax Checklist: A List Of Deductions Not To Miss
Other deductions for an iDitch Artisan would typically include:
• The cost of your iPhone or other cell phone (100 percent deductible if you use it just for business, otherwise you can deduct the business use percentage)
• Any extra insurance coverage you obtain for your business
• Fees and commissions iDitch charges you (however, don’t deduct any fees iDitch takes directly from your pay and
DOES NOT include in the compensation listed on your 1099 form)
• Home Office Deduction: You can qualify for this valuable deduction if you use a portion of your home exclusively for record keeping and other administrative tasks for your business
• Parking fees and toll fees
• Interest on a car loan, if you use the car for personal and business use, the business use percentage is deductible on Schedule C
• PayPal and/or credit card transaction fees you pay.(iDitch clients only)
You need to keep track of all of these and any other expenses you incur for your business. There are many accounting and tax preparation apps and software you can use to keep track of your expenses. You can even prepare your tax return yourself.
Do iDitch Artisans Need to Pay Estimated Taxes?
Self-employed people are not allowed to wait until April 15 to pay all the income and self-employment (Social Security and Medicare) taxes they owe for the prior year. Instead, they are required to prepay their taxes by making estimated tax payments to the IRS four times per year.
You must pay estimated taxes if you expect to owe at least $1,000 in federal tax for the year from your business as an Artisan. You’ll probably need to earn a profit of at least $5,000 or $6,000 from your business to owe this much tax.
The IRS imposes modest interest penalties if you don’t pay enough estimated tax. To avoid the penalties, you must pay at least the smaller of:
• 90 percent of your total tax due for the current year 100 percent of the tax you paid the previous year or 110 percent if you’re a high-income taxpayer.
High-income taxpayers—those with adjusted gross income of more than $150,000 ($75,000 for married couples filing separate returns)—must pay 110 percent of their prior year’s income tax.
Quarterly Tax Payment Due Dates
Estimated tax must ordinarily be paid in four installments: April 15, June 15, September 15, January 15 (of the following year).
Remember, you don’t have to start making payments until you actually earn income.
If you don’t receive any income by March 31, you can skip the April 15 payment. In this event, you’d ordinarily make three payments for the year starting on June 15. If you don’t receive any income by May 31, you can skip the June 15 payment as well and so on.
IRS SHARING ECONOMY FAQ>>>
FOR ARTISAN ACCOUNTS AND PAYMENTS
When am I paid each week?
iDitch calculates payments once a gig is finished successfully. Our payment processing period are only done during week days. That means if a gig is concluded successfully on a Saturday, or a Sunday, the gig would not be processed until on Monday and the Artisans compensation would be available to the Artisan the following Wednesday, after 5:00pm (eastern standard time). This means any gig activated and concluded successfully, on Monday after 5:00pm (eastern standard time) compensation will appear in the same week’s payment statement on a Thursday. Payments are made once every 3 business days.
Monday: Old payment cycle ends and new one begins
Tuesday: Artisans statements are added to invoices
Wednesday: Payments are processed before 5:00pm (EST)
Thursday: Payments are deposited directly into your bank account
Income Received for the Period
USA Estimated Tax Due Date
Jan. 1 through March 31
April 1 through May 31
June 1 through Aug. 31
Sept. 1 through Sept. 30
CANADA Estimated Tax Due Date