Who Creates W-2 Forms?

Who Creates W-2 Forms? The massive online platforms like OnlyFans had a revolutionary impact on the ways individuals earn income. For content creators who use OnlyFans as a source of revenue, understanding tax documents such as the W-2 form is crucial. But who is responsible for issuing this form, and what does it mean for those working in the gig economy?

What Is a W-2 Form?

A W-2 form is officially called the Wage and Tax Statement. This document is provided to their employees by the employers so that they can file their tax returns accurately. It outlines the total wages earned alongside the taxes withheld during the relevant fiscal year. These forms not only establish full tax compliance but also present a record of income for the year.

A W-2 form is standard practice in the traditional businesses. Yet, the scenario is quite different in the case of OnlyFans or such platforms,

OnlyFans Creators Don’t Receive W-2 Forms

Professional content creators on OnlyFans are classified as independent contractors rather than employees. This distinction is significant because independent contractors do not receive W-2 forms. On the contrary, they receive a 1099-NEC form if they receive more than $600 from a client or platform like OnlyFans. Independent content creators are responsible for handling their own obligations including self-employment taxes.

There are obvious reasons for OnlyFans creators to fall under the independent contractor category:

• Control of Work: Content creators decide what content to produce and how often they publish.
• Financial Risk: Unlike employees, creators bear the business risks by handling the cost of their own equipment, software subscriptions and other similar expenses.
• Platform Agreement: The contracts between creators and OnlyFans explicitly state that creators are not employees.

Who Creates W-2 Forms?

W-2 forms are generated by employers for their classified employees. These employers manage the responsibilities outlined below.

• Calculating wages earned by the employee.
• Withholding federal, state and local taxes.
• Submitting tax payments to the IRS.
• Issuing W-2 forms by January 31 of the following year.

Since OnlyFans does not employ its creators in the traditional sense, the platform simply does not create W-2 forms for them.

The Role of OnlyFans in Tax Reporting

While OnlyFans does not issue W-2 forms, it plays another role in tax reporting implications for its creators. The platform tracks all the earnings of its users and presents Form 1099-NEC to those who meet the threshold as indicated before. This form includes the total payments creators received in the taxation year as well as other necessary details for reporting to the IRS.

It is worth mentioning that OnlyFans may not issue any tax document for creators earning less than $600 in a year. But the responsibility to report their income remains the same.

OnlyFans Tax Responsibilities 

As independent contractors, OnlyFans creators handle their tax obligations by themselves. The key tax responsibilities can be outlined as below:

• Tracking Income: Keeping a detailed log of all payments received from OnlyFans even if the amount is less than $600 is vital.
• Paying Estimated Taxes: Quarterly estimated taxes are essential for content creators who receive significant revenues.
• Deducting Expenses: Legitimate business expenses can be claimed like equipment costs, internet bills and software subscriptions.

Final Thoughts

As explained throughout the article, the W-2 form is presented to employees by their employers. So, individual OnlyFans content creators do not have to handle it. Yet, remaining federal and state-level tax obligations have no less importance. In case you need assistance at any step, you may consider our team of CPAs. Dimov Tax presents professional OnlyFans tax services to content creators and agencies. We are here to help you stay fully compliant.

FAQs on W-2 Forms and OnlyFans