{"slug":"99designs","name":"99designs by Vista","category":"freelance","workerTerm":"designers","classification":"Designers are independent contractors, not employees, agents or representatives of 99designs, according to its Terms of Use. The terms also make designers responsible for sales taxes, VAT, GST and duties on their design sales.","taxForms":"Hyperwallet (a PayPal service) is 99designs' exclusive designer payout provider, and 99designs says Hyperwallet provides any tax documents US-based designers need. 99designs does not say which 1099 type is used. For 2026, Form 1099-NEC applies at $2,000 or more, and Form 1099-K applies above $20,000 and more than 200 transactions.","platformFees":"On 1-to-1 Projects, designers pay a platform fee of 15% at Entry Level, 10% at Mid Level or 5% at Top Level. A client introduction fee takes 20% of the first $500 of paid invoices with each new client, capped at $100, and is waived in some cases. Clients pay their own 5% platform fee. Hyperwallet withdrawal fees vary by payout method, region and currency.","payouts":"After a client releases funds or a Contest handover is complete, a 5-business-day review runs, then earnings are sent to the designer's Hyperwallet account automatically once the balance is at least $25.","deductions":["99designs designer platform fees (5%-15%) and client introduction fees","Hyperwallet withdrawal and currency conversion fees","Design software, font licenses and stock images bought for client work","Computer, monitor and drawing tablet used for design work","Home office used regularly and exclusively for design work","Business share of internet and phone bills"],"watchOuts":["99designs moved designer payouts to Hyperwallet starting January 19, 2026, so look for your 2026 tax documents in Hyperwallet, not in your 99designs account.","99designs adds VAT to invoices for some EU-based designers starting May 1, 2026. US designers do not need to give VAT details, and non-EU designers get 0% VAT by default.","Contest prizes and 1-to-1 Project pay are both self-employment income. You must report them even if you fall below the $2,000 1099-NEC or $20,000/200-transaction 1099-K thresholds and get no form.","The client introduction fee applies to each new client unless you won or were a finalist in a contest with that client, or invited a client new to 99designs yourself. Build it into your quotes and track it as an expense."],"competitors":["fiverr","upwork","designcrowd","dribbble"],"notes":"Corrected: the draft said 99designs does not collect any taxes, but its VAT page says it adds VAT for some EU designers from May 1, 2026; the terms' tax clause covers sales taxes, VAT, GST and duties, not income tax filing. Added the client introduction fee waivers.","sources":["https://99designs.com/legal/terms-of-use","https://support.99designs.com/hc/en-us/articles/360022206031-What-is-a-platform-fee","https://support.99designs.com/hc/en-us/articles/360022018152-What-is-a-client-introduction-fee","https://support.99designs.com/hc/en-us/articles/204108829-Which-payment-providers-does-99designs-use","https://support.99designs.com/hc/en-us/articles/47094672462740-VAT-and-Tax-Information-for-Designers","https://support.99designs.com/hc/en-us/articles/360001329063-What-s-going-on-with-my-pending-payout","https://www.irs.gov/instructions/i1099mec","https://www.irs.gov/newsroom/irs-issues-faqs-on-form-1099-k-threshold-under-the-one-big-beautiful-bill-dollar-limit-reverts-to-20000"],"asOf":"2026-10-07","url":"https://gigaverse.ai/platforms/99designs","affiliated":false}