Independent Contractor Classification

Understanding your status on DIBS

What Does It Mean?

You are an independent contractor, not an employee of DIBS. This is a legal classification with important implications for taxes, benefits, and how the platform operates.

This classification is based on IRS criteria and Washington State law regarding the relationship between the platform and service providers.

Why You're Classified as IC

You Control Your Schedule

Independent Contractor

You choose when, where, and how often you work

You Set Your Prices

Independent Contractor

You submit your own bids and negotiate rates

You Use Your Own Tools

Independent Contractor

DIBS provides no equipment, uniforms, or supplies

You Can Work Elsewhere

Independent Contractor

No exclusivity—work on any platform simultaneously

You Provide Your Skills

Independent Contractor

DIBS is a marketplace, not an employer directing your work

You Manage Your Business

Independent Contractor

You maintain your own business records and insurance

What This Means for You

You DO NOT Get

  • ✗No wages or hourly pay
  • ✗No health insurance or benefits
  • ✗No workers compensation
  • ✗No unemployment insurance
  • ✗No paid vacation or sick leave
  • ✗No job security or employment contract
  • ✗No FICA payroll deductions

You ARE Responsible For

  • →Self-employment tax (15.3% of net earnings)
  • →Business liability insurance
  • →Business records and accounting
  • →1099-NEC tax filing
  • →Quarterly estimated tax payments
  • →Business licensing (if required)
  • →Workers compensation (if legally required)

Legal Basis for IC Classification

This classification is based on established legal tests:

IRS 20-Factor Test

Evaluates control, investment, profit/loss, and relationship permanence

ABC Test (California AB5)

Control, business opportunity, and independent business operation

Economic Realities Test

Whether the worker is economically dependent or truly independent

Washington State Criteria

Following state law on contractor classification and worker protection

Tax Obligations

1099-NEC Filing

DIBS will issue a 1099-NEC for any year you earn $600+ (or $400+ for all states). It's your responsibility to file it with your taxes.

Self-Employment Tax

You owe approximately 15.3% of net earnings (self-employment tax). Quarterly estimated tax payments are recommended.

Income Tax

DIBS does not withhold income tax. You are responsible for filing your own 1040 and state returns.

Deductions

You can deduct legitimate business expenses (equipment, insurance, vehicle, home office, education) to reduce taxable income.

Questions About Your IC Status?

Contact support@dib-s.com or consult a tax professional regarding your specific situation.