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what is the withholoding tax?

what is the tax liability do you do withholding of state and local taxes? or report income?

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Rover sitters are independent contractors and maintain a 1099 relationship. Taxes are the responsibility of the sitter and are not collected by Rover.

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Yes but could we add the taxes to our bookings or figure it in our rates? Does anyone do that?

Not really, you could raise your rates, but, you are paid the income based on your completed bookings and you are responsible to pay your taxes