Question 1

How much does it cost to use Found contractor management?

Accepted Answer

Nothing! It’s completely free to use. Unlike other contractor management software, Found’s contractor tools have no monthly or per-contractor fees.

Question 2

What are the benefits for my contractor to create a Found account?

Accepted Answer

If your contractor creates a Found business checking account, they will have any payments from you instantly deposited for free.  They’ll also be able to easily share their W-9 with you and access our powerful bookkeeping features, like auto-saving for taxes. In addition, they’ll be able to spend their money instantly using their Found debit card. A standard Found account is free to use. (Note that we do offer an optional, paid subscription called Found Plus.)

Question 3

What is a W-9 form?

Accepted Answer

The W-9 is an IRS form commonly used by self-employed people. It enables businesses to collect tax information from anyone they pay who isn’t an employee, such as independent contractors. Businesses are required to report to the IRS how much they paid each contractor, and to do so, they need the information in the W-9 form. For more information, see our article All About the W-9 Form.

Question 4

Will Found help me collect my contractors’ W-9 information?

Accepted Answer

Yes. When your 1099 contractor accepts a payment, we will prompt them to fill in their W-9 information. We can also send email reminders on your behalf.

Question 5

How do I pay a contractor through Found?

Accepted Answer

After you log into Found on the mobile app or browser, you’ll see an option to send money and pay contractors. Once you send the payment, your contractor will be notified and have options on how they want to receive the payment. They can create a Found business checking account, and have your payment instantly deposited for free. Or they can deposit their payment via ACH into an external bank account of their choice. It will take 1-2 business days for the ACH deposit to transfer.

Question 6

What is a 1099-NEC form?

Accepted Answer

The 1099-NEC form specifies how much you paid an independent contractor in a given year. For more information, see our article The 1099-NEC Form.

Question 7

Will Found generate 1099-NEC forms for me at the end of the year?

Accepted Answer

Yes, Found will create completed 1099-NEC forms for you. For more information, see article How do I create 1099s with Found? When you provide a copy of the 1099-NEC form to your contractor, you can also direct them to this article: I was sent a 1099 form, what do I do with it?

Question 8

What’s the difference between independent contractors and employees?

Accepted Answer

Independent contractors are self-employed individuals, and you will provide them a 1099-NEC form at the end of the tax year. Employees are hired by your business on a full-time or part-time basis, and require a W-2 form at the end of the tax year.  For more information, read our article on the differences between 1099 contractors and employees.

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