Terms of Service

Last Updated: May 10, 2026

Please read these Terms of Service carefully before using EarnDrift. By using the Service, you acknowledge that you have read, understood, and agree to be bound by these Terms.

1. Acceptance of Terms

By accessing or using EarnDrift ("the Service"), you agree to be bound by these Terms of Service. If you do not agree, you may not use the Service. EarnDrift is available exclusively to individuals who are legal residents of the United States of America and are at least 18 years of age.

2. Nature of the Service

EarnDrift is 1099 and W-9 software for businesses that hire independent contractors. It helps owners track contractor payments, collect W-9s, monitor IRS filing thresholds, and generate informational compliance reports. THE SERVICE DOES NOT PROVIDE TAX ADVICE, LEGAL ADVICE, FINANCIAL ADVICE, OR ACCOUNTING SERVICES. All calculations, threshold estimates, readiness scores, and projections displayed within the application are for INFORMATIONAL PURPOSES ONLY and should not be relied upon as a substitute for advice from a licensed CPA, Enrolled Agent, tax attorney, or other qualified professional.

3. Tax Estimates and Projections

EarnDrift provides estimated calculations including payment thresholds, 1099 readiness scores, and compliance projections based on the data you enter. These estimates are for INFORMATIONAL PURPOSES ONLY and do not account for all variables that affect your actual tax filing obligations. Tax laws change frequently, and individual circumstances vary. Users are solely responsible for verifying their obligations with a qualified tax professional.

4. No Guarantee of Compliance

Any figures displayed within EarnDrift regarding 1099 thresholds, filing readiness, or compliance status are ESTIMATES ONLY. Actual filing obligations depend on numerous factors including but not limited to: total payments to each contractor, contractor classification, state and local requirements, and changes in tax law. EarnDrift does not guarantee any specific compliance outcome.

5. User Responsibilities

You are solely responsible for: (a) the accuracy of contractor and payment information you provide to the Service; (b) reviewing and verifying all calculations and estimates before relying on them; (c) consulting with qualified professionals regarding your tax filing obligations; (d) timely filing of all required 1099 forms and making all required tax payments; and (e) maintaining records sufficient to substantiate contractor payments. EarnDrift's threshold tracking and readiness scores do not guarantee IRS compliance.

6. Payment Processing and Money Movement

EarnDrift is a software platform. Payment processing services are provided by Stripe, Inc. and its affiliates ("Stripe"), a licensed money transmitter. EarnDrift does not hold, transmit, or take custody of funds at any point — funds move directly from your connected funding account to the contractor's connected bank account via Stripe's ACH infrastructure. By using EarnDrift's payment features (including Send Pay), you agree to Stripe's Connected Account Agreement and Stripe Services Agreement. EarnDrift's role is limited to initiating payment instructions on your behalf through Stripe's infrastructure and recording the resulting transaction history. EarnDrift is not a bank, money transmitter, or money services business. Settlement timing (typically 1–3 business days for the contractor leg, 4–6 business days end-to-end) is governed by Stripe and the ACH network, not EarnDrift.

7. Subscription and Billing

A free EarnDrift account is available with no payment method required and no time limit; the subscription terms below apply once you activate a paid plan. EarnDrift offers three tiers: Starter ($129/month, up to 35 contractors), Growth ($249/month, 36–125 contractors), and Scale ($499/month, 126–350 contractors). All plans include standard contractor bank-transfer payments with no per-1099 fees at year-end. A flat platform fee of $0.50 per contractor payment is added to the bank-transfer debit from your funding account at the time you send; this fee applies during the 14-day free trial as well, because the trial waives the base subscription and not per-transaction fees. Standard transfers are processed in consolidated pay-run batches subject to a fair-use cadence: Starter includes 4 pay-run batches per billing cycle, Growth includes 8, and Scale is unlimited. Pay-run batches beyond the included quota, and pay-run line items beyond the included per-cycle line quota (Starter 100 lines, Growth 400 lines, Scale unlimited), carry a fair-use surcharge scaled to the size of that pay run — a minimum of $1.00 and a maximum of $5.00 per pay-run batch. See "Fair-Use Pay-Run Cadence" below. Minimum amounts apply: $25.00 per pay-run batch and $10.00 per contractor line item. If a bank-transfer debit is returned unpaid (for example for insufficient funds), a $4.00 returned-payment fee may be charged and repeated returns may suspend your ability to send payments pending review. Annual plans are billed MONTHLY at a discounted rate (~17% savings vs. paying month-to-month) in exchange for a 12-month commitment: Starter $108/month ($1,296 over the 12-month term), Growth $208/month ($2,496 over the term), Scale $416/month ($4,992 over the term). Annual plans do NOT involve a single upfront charge — your payment method is charged the discounted amount every month for 12 months, then auto-renews on the same monthly cadence unless cancelled before the term ends. Custom pricing is available for rosters exceeding 350 contractors. Every paid plan begins with a 14-day free trial that starts on the date you first submit payment information at checkout; no subscription charge is made until the trial ends, and cancellation before day 15 results in no subscription charge. By providing payment information, you authorize us to charge your payment method on the recurring monthly schedule for the plan you selected at checkout. Monthly subscribers may cancel at any time through the customer portal; cancellation takes effect at the end of the current billing period. Annual subscribers cannot self-cancel during the 12-month commitment period and must contact support to request early termination. No partial refunds are issued.

7a. Fair-Use Pay-Run Cadence

A "pay-run batch" is a single consolidated bank-transfer debit that funds one or more contractor payments initiated together. Each plan includes a number of included pay-run batches per billing cycle: Starter 4, Growth 8, Scale unlimited, plus a per-cycle line-item allowance (Starter 100 lines, Growth 400 lines, Scale unlimited). Pay-run batches beyond the included batch quota, or pay runs that exceed the included line allowance, carry a fair-use surcharge on that pay-run debit. The surcharge is proportional to the size of the pay run — approximately 0.8% of the pay-run total, with a $1.00 minimum and a $5.00 maximum per batch — so a small over-quota pay run is charged $1.00 and a large one up to $5.00. The fair-use surcharge is separate from, and in addition to, the flat $0.50-per-contractor-payment platform fee described in Section 7. There is no per-1099 fee at year-end. The cycle resets on each Stripe billing-period anchor. Bundling multiple contractors into a single pay run does not consume additional batch quota — only the number of distinct pay-run batches counts toward the included batch quota, while each contractor line counts toward the line allowance.

8. Limitation of Liability

TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, EARNDRIFT AND ITS OFFICERS, DIRECTORS, EMPLOYEES, AND AGENTS SHALL NOT BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES, INCLUDING WITHOUT LIMITATION: LOSS OF PROFITS, DATA, OR GOODWILL; TAX PENALTIES, INTEREST, OR ADDITIONAL TAX LIABILITY; COSTS OF OBTAINING SUBSTITUTE SERVICES; OR ANY DAMAGES ARISING FROM YOUR USE OF OR INABILITY TO USE THE SERVICE. IN NO EVENT SHALL EARNDRIFT'S TOTAL LIABILITY EXCEED THE AMOUNTS PAID BY YOU TO EARNDRIFT IN THE TWELVE (12) MONTHS PRECEDING THE CLAIM.

9. Indemnification

You agree to indemnify, defend, and hold harmless EarnDrift and its affiliates from any claims, damages, losses, liabilities, and expenses (including reasonable attorneys' fees) arising out of or related to: (a) your use of the Service; (b) your reliance on any estimates, calculations, or information provided by the Service; (c) your failure to comply with applicable tax laws; or (d) your breach of these Terms. This indemnification obligation does NOT extend to claims to the extent caused by EarnDrift's gross negligence, willful misconduct, or violation of law.

10. Disclaimer of Warranties

THE SERVICE IS PROVIDED "AS IS" AND "AS AVAILABLE" WITHOUT WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, ACCURACY, AND NON-INFRINGEMENT. EARNDRIFT DOES NOT WARRANT THAT THE SERVICE WILL BE UNINTERRUPTED, ERROR-FREE, OR THAT ANY TAX CALCULATIONS WILL BE ACCURATE OR COMPLETE.

11. Governing Law

These Terms shall be governed by and construed in accordance with the laws of the United States and the State of Delaware, without regard to conflict of law principles. Subject to the arbitration provision in Section 13, any disputes arising under these Terms shall be resolved in the state or federal courts located in the State of Delaware.

12. Changes to Terms

We reserve the right to modify these Terms at any time. Material changes will be communicated via email or in-app notification at least 30 days prior to taking effect. Your continued use of the Service after changes become effective constitutes acceptance of the revised Terms.

13. Binding Arbitration & Class-Action Waiver

PLEASE READ CAREFULLY — THIS SECTION AFFECTS YOUR LEGAL RIGHTS. Any dispute, claim, or controversy arising out of or relating to these Terms or the Service (a "Dispute") shall be resolved by binding individual arbitration administered by the American Arbitration Association (AAA) under its Commercial Arbitration Rules, with the seat of arbitration in Wilmington, Delaware. The arbitrator shall have exclusive authority to resolve any Dispute, including the scope and enforceability of this arbitration provision. YOU AND EARNDRIFT EACH WAIVE THE RIGHT TO A TRIAL BY JURY AND TO PARTICIPATE IN A CLASS, COLLECTIVE, OR REPRESENTATIVE ACTION. The arbitrator may not consolidate more than one person's claims and may not preside over any form of representative or class proceeding. Notwithstanding the foregoing, either party may bring an individual action in small-claims court or seek injunctive relief in a court of competent jurisdiction to prevent infringement of intellectual property rights or unauthorized access to the Service. 30-DAY OPT-OUT: You may opt out of this Section 13 by sending written notice to legal@earndrift.com within 30 days of first accepting these Terms (or 30 days of the effective date of any future amendment to this Section). The notice must include your name, account email, and a clear statement that you decline arbitration. Opting out does not affect the rest of these Terms.

14. Contact

Questions about these Terms? Email legal@earndrift.com or write to EarnDrift, 5900 Balcones Drive STE 100, Austin, TX 78731.

Changelog

May 2, 2026 — Added Section 6 (Payment Processing and Money Movement) clarifying Stripe as the licensed money transmitter and EarnDrift's role as a software platform that does not take custody of funds.
March 23, 2026 — Initial publication.