DoorDash is a US-based food delivery and ordering platform that was founded in January 2013. The company went public in 2020 on New York Stock Exchange and is homed in San Francisco, California.
DoorDash’s platform was developed by four founders: Tong Xu, Stanley Tang, Andy Fang, and Evan Moore. It didn’t take too long for the company to become the largest food delivery service and platform in the United States.
The overwhelming response of the customers toward the platform helped the company to expand its service areas. Therefore, DoorDash is also operating in Canada, Australia, Japan, New Zealand, and Germany.
The business model of DoorDash is such that the delivery platform will charge a fixed commission from the business that registers with DoorDash. The commission is charged on the orders that the restaurants and businesses receive via DoorDash. The delivery people of DoorDash are called Dashers, and they work as independent contractors.
In today’s article, we will talk about DoorDash’s pay stubs, income statements, proofs of earnings, and relevant tax forms the employees and dashers need to file. So let’s get into it.
What Is DoorDash Pay Stub And W2?
DoorDash pay stubs are documentary evidence of the salary amount paid to the company’s internal employees. The pay stubs summarize every employee’s gross wages, salary, deductions, contributions, and net pay. However, one thing that needs to be cleared is that pay stubs are issued to the employees working in the corporate setup of DoorDash.
Similarly, the Form W2 is issued by the employer to the employee and summarizes the wages, deductions, contributions, and taxes withheld at federal, state, and local levels. The Form W2 of DoorDash is also issued for employees working full-time or part-time for the company, not independent contractors(delivery people).
Who Will Receive DoorDash Pay Stubs And Form W2?
After we have defined the pay stubs and Form W2 of DoorDash, the next question is who is entitled to receive these documents.
If you’re a vendor registered on DoorDash, you won’t receive pay stubs or Form W2. Similarly, if you have registered yourself on the platform as Dasher, you cannot claim the pay stubs from the company.
The internal employees of DoorDash working in the corporate setup of the company are entitled to receive the monthly pay stubs or the Form W2, as DoorDash is their employer. The total number of employees working at DoorDash was 8600 as of 2021, doubling to 16,800 in 2022. This number represents the company’s total workforce working at different locations worldwide. The number of employees working in the US will be just a part of the total workforce.
If we talk about the taxes in the United States, the only employees who will receive W2s or pay stubs from the company are those DoorDash identifies as its employees.
Will DoorDash Send Pay Stubs And Form W2 To Dashers?
Before we talk about the Dashers receiving pay stubs and W2s, we need to discuss who the Dasher is. The company introduced the term Dasher for any individual across the US who wants to work as an independent contractor and earn money for himself. The company allowed individuals to sign up and register on the platform.
It wouldn’t be wrong to say that DoorDash has implied the gig economy concept. The gig economy refers to picking up temporary work for money or working as an independent contractor.
The dashers working through DoorDash platforms get paid based on each delivery’s base pay. However, 100% of any tips given to the dashers belong to them.
So let’s get back to the real question: Will DoorDash send pay stubs and Form W2s to Dashers?
Unfortunately or fortunately, Dashers are no employees of the company. Therefore, they will not receive the regular pay stubs or Form W2. Therefore, no public information is available regarding the DoorDash pay stubs and W2s.
What Is the Alternative Of DoorDash Pay Stubs For Dashers?
Undoubtedly the Dashers are not the company’s employees and will not receive relevant W2 from the company. However, they still need to file their taxes to report the income to the IRS. As they are working with the DoorDash platform, they must receive an alternative to pay stubs and W2 to report their earnings from services.
So what is the alternative of pay stubs the Dashers can use?
As a Dasher or Vendor registered and doing business with DoorDash, you will get access to your payment history or earning proof via the dashboard. And the proof of earning will be referred to when reporting the income in your tax return.
Previously, the Dashers and vendors needed to open a support ticket or write an email to the company to receive the proof of income. However, with updates and advancements, the Dashers can download their earnings statement in CSV files right from DoorDash.
The proof of earnings or statement of earnings can be viewed and downloaded right from the Dashers or Vendor’s dashboard in the app.
You can view your weekly pay statements from the Financial tabs or through the payment emails you receive on every delivery made. Once you have downloaded the details, you can summarize the total income to be reported for the tax return.
What Is the Alternative Of DoorDash Form W2 For Dashers?
The alternative to DoorDash pay stubs is the payment history and payment emails. What is the tax-related alternative of W2 for the Dashers?
Form 1099 is the tax form that Dashers receive from the company to file the income in the tax return accordingly. Form 1099 is a symbolic term for all the tax documents that IRS calls information returns.
The Form 1099 can be for various types of payments or sources of income of individuals filing tax returns. Whether you’re a business owner or an investor, you will have to file one of the forms from the series of Form 1099.
The Form 1099 received by Dahers is Form 1099-NEC. It stands for nonemployee compensations received by the tax filer or individual. Since dashers are not employees, they receive the 1099-NEC if the individuals meet the minimum threshold of $600 or more.
The previous minimum threshold for Form 1099-NEC or 1099-MISC was $5000 or more in consumer product sales made by the tax filers.
It contains information regarding the amount of nonemployee compensation, payers’ tax identification number, recipient’s tax identification number, address, and also information about federal, local, and provincial taxes withheld.
How Can Dashers Receive Form 1099 And File Their Taxes?
The company has partnered with Stripe Express to facilitate Dashers, vendors, and merchants by collaborating with third-party software to facilitate the Dashers. Stripe Express is a third-party platform allowing businesses to manage their payout schedules, fund flows, etc.
If you’re an eligible Dasher who has made more than $600 by making deliveries via DoorDash, you will receive an email from Stripe Express. Here is a general flow of how you will get access to your tax form via Stripe Express.
- You will receive an email with the subject ‘Action Required to receive your DoorDash tax form 2022. This is an invitation email to sign up for the Stripe Express account to receive the tax forms there.
- Once you have signed up, you will be able to review and edit your tax information in Stripe Express.
- You might receive an email from Stripe Express to confirm your TIN.
- Once your tax information and other details are confirmed, you will receive your 1099-NEC to file the tax returns.
How Can Vendors and Merchants Access Their Earning Statements And Proof Of Earnings?
If you’re not a dasher but a business owner registered with DoorDash, you will still need a 1099-K to report your income to IRS. The form 1099-K is delivered to the merchants via the following methods:
- Paper copy via mailing address
- E-delivery via Stripe Express.
When Is DoorDash Release Pay Stub And W2 Form?
DoorDash typically releases pay stubs on a weekly basis, depending on the pay schedule established for your account. It is important to check with DoorDash’s support team or your account dashboard to confirm the payment schedule for your account.
DoorDash typically releases W2 forms by January 31st of each year for the previous tax year. This allows employees to file their taxes on time and accurately report their income for the year.
It is important to ensure that your mailing address is up-to-date with DoorDash so that you receive your W2 form in a timely manner. You can also opt to receive your W2 form electronically through the DoorDash portal.
We have discussed everything you need to know about the pay stubs and Form W2 of DoorDash. The company has numerous employees working at different work locations and geographical territories.
We have tried to comprehend everything a Dasher might need to know when looking for relevant documents to file income tax returns.