Is Uber Eats Self-Employment

Is Uber Eats Self-Employment

Many workers are turning to delivery services such as Uber Eats and Postmates. Some of these workers use the apps for their full-time income, while others use them as supplemental income.

Either way, the question comes up of whether or not Uber Eats drivers are employees or independent contractors.

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Are Uber Eats Drivers Self-Employed?

Yes, Uber Eats drivers are self-employed and considered independent contractors. Uber Eats drivers are fully responsible for their taxes, bills, insurance, and other liabilities when delivering orders. Being an independent contractor in the U.S. also means Uber Eats Drivers are paying the complete 15.3% of FICA taxes.

What Exactly Is an Independent Contractor?

Independent contractors are people, businesses, or corporations that provide goods and services under a contract. Independent contractors do not regularly work for employers, but as required.

Independent contractors file a form 1099 instead of a W-2 with the IRS. These contractors also pay a total of 15.3% FICA taxes, rather than the 7.65% of regular employees.

How Do I Start Driving For Uber Eats?

To start driving for Uber Eats, drivers must fill out a form providing their contact information. From there, drivers will need to pass a background and vehicle check to be eligible to deliver orders. If they fail the background check, they will not be eligible to drive.

This screening process shouldn’t take any longer than one to two weeks at the most. Drivers can deliver orders using traditional vehicles, scooters, bicycles, motorcycles, and more.

What Are The Benefits Of Being Self-Employed With Uber Eats?

Being self-employed or an independent contractor comes with many unique advantages. Independent contractors can set their hours, be their boss, and generally have more freedom than traditional employees.

Uber Eats has flexible hours like other delivery apps such as DoorDash and Grubhub. This flexibility is one of the reasons, so many workers are switching to delivery apps to supplement their income.

Find out what to do if Uber sent you the wrong order.

Can I Be Employed Somewhere Else While Driving For Uber Eats?

Yes, you can be employed with another company while driving for Uber Eats. You can also use other delivery apps while using the Uber Eats platform. This is one of the many reasons workers turn to delivery apps for their primary source of income.

Which Delivery App Earns The Most Money?

Every driver’s mileage will vary. Every delivery app will have different levels of performance based on location, time, and more. That being said, most drivers prefer DoorDash to Uber Eats.

Uber Eats comes with more driving and vehicle restrictions than DoorDash. Many drivers prefer the DoorDash app layout and design as well. For these reasons, DoorDash is much easier to get started with than Uber Eats.

Do I Get Overtime With Uber Eats?

No, Uber Eats does not provide their drivers with overtime compensation or pay. Being an independent contractor means you are not employed and will not receive the same benefits.

However, Uber Eats does have incentive programs for its drivers. These programs are known as “surges” and provide additional income during busy hours. Surges may range from an additional $3 per order, all the way to $5.

Should I Drive For Uber Eats?

Choosing which delivery app to start with can make or break your driving experience. Some apps are more fickle, and others aren’t as busy. Driving for Uber Eats isn’t a bad idea, but many drivers prefer other apps.

DoorDash has fewer requirements and restrictions than Uber Eats, making it a popular starting point for drivers. Grubhub has a broader range than DoorDash, making it an excellent choice as well.

However, whether you start with Uber Eats, DoorDash, or another app, you can always try one out. Being an independent contractor means you can work when you please, allowing you to get a feel for the app and your location.

So, the choice is up to you. You may find Uber Eats is incredibly profitable in your area. Give the app and a few others a try. From there, you can see which app is worth pursuing in-depth.

Are Uber Eats Drivers Independent Contractors?

Yes, driving for Uber Eats makes you self-employed and an independent contractor. These independent contractors set their hours, schedules, and more. Uber Eats drivers file a form 1099 instead of a W-2 with the IRS. These contractors also pay a total of 15.3% FICA taxes, rather than the 7.65% of regular employees.

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