Grubhub Pay: Income Amounts & Other Important Information (2023)

FAQs

How do I show proof of income with Grubhub? ›

Well, it's not necessarily straightforward, but it's absolutely possible to make $1000 a week with GrubHub if you take a few key steps. But remember: in order to make the most of your deliveries via GrubHub, it's vital to take a few steps to optimize your delivery value.

Average Grubhub Delivery Driver hourly pay in California is approximately $18.34, which is 10% above the national average.

Grubhub Delivery partners are classified as independent contractors. Grubhub does not withhold any federal, state, or local taxes from your income, nor are we able to change your classification. You are solely responsible for paying the taxes on your earnings.

Pay stubs, earnings statement or W- 2 form identifying employee and showing amount earned period of time covered by employment. Signed and dated form or letter from employer specifying amount to be earned per pay period and length of pay period.

Does Grubhub pay drivers daily? Drivers are able to cash their earnings out up to $500 a day using the Instant Cash Out feature, which is free for Chase Bank customers and $. 50 each for all other bank customers.

Grubhub has a much smaller market share compared to DoorDash, and customers can order fewer types of items. Does Grubhub or DoorDash make more money? DoorDash has a higher national average pay than Grubhub, and it's not uncommon for DoorDash drivers to make $100/day.

You will be paid Delivery Pay + 100% of your tips for every order you deliver. For more information, you can review your payment terms in the Grubhub for Drivers app.

Yes, Grubhub drivers are able to see their total payment amount they will recieve for each order, which includes 100% of the diner's tip.

Do Grubhub drivers get paid for gas? ›

No, Grubhub does not pay for gas. However, Grubhub does offer competitive pay that accounts for mileage when calculating each offer. Be sure to visit the driver site to find out more information about driving with Grubhub.

According to Indeed, Grubhub delivery drivers in the US make an average of $18.28 per hour. However, actual hourly wages range from $8.65 to $31.35.

Grubhub may not be the most lucrative side gig, but it's a great introduction to side-gigging and the gig economy, as are all of the other delivery platforms. It doesn't take too much to get going with Grubhub. As long as you maintain an active account, it'll be there when you need it.

You'll notice the Grubhub EIN on the 1099-NEC the company sends you. Grubhub reports to the IRS all the income is paid out to you throughout the year. If you're tempted to under-report your Grubhub income, you need to be aware that the IRS knows the income amount that appears on Form 1099-NEC.

If you earn more than $400 from GrubHub, Postmates, DoorDash, or UberEATS, you must file a tax return and report your delivery earnings to the IRS. Most delivery providers report income as sole proprietors, which allows you to report business income on your personal tax return.

Pay stub

A pay stub is usually the easiest way to show proof of income. That's because it shows the income you earned during a specific pay period as well as your year-to-date (YTD) income.

Self-Employed Pay Stubs

Self-employed individuals can create their own pay stubs to serve as a record of their earnings. At the same time, these pay stubs can also be used like any other pay stub: as proof of income documentation for a financial transaction that requires it.

Bank statements are among the most common documents used for income verification. Bank statements show the movement of funds into and out of an account and provide insight into the borrower's income, spending, and debt repayment history. Retired and self-employed borrowers often use bank statements as proof of income.

The net income you earn from your own trade or business. For example, any net income (profit) you earn from goods you sell or services you provide to others counts as self-employment income. Self-employment income could also come from a distributive share from a partnership.

Does Grubhub have a limit? ›

There are no special codes required and no limits on how many orders you can place per month.

I ended up making about $17 an hour and averaged around $85 each week. Below, you can see a breakdown of my earnings from one of those weeks. As a Grubhub driver, your earnings will include the delivery pay, tips, Grubhub contributions and any bonuses or adjustments.

DoorDash reports that average drivers make $25 an hour. This means if you work 40 hours a week, which is considered full-time, you would earn $1,000 before tax.

Mileage Per Order: You get paid more for longer Grubhub orders, although the exact pay-per-mile varies on market and other factors. Time Spent On Road: Because sometimes mileage doesn't always accurately represent how long an order takes, drivers are also compensated for the total time on the road.

Base pay from DoorDash to Dashers ranges from $2-$10+ per delivery depending on the estimated duration, distance, and desirability of the order. Deliveries that are expected to take more time, that require Dashers to travel a longer distance, and that are less popular with Dashers have higher base pay.

When tipping on Grubhub, the tip money goes straight to the delivery drivers, as it should. Some orders may include an additional “delivery fee”, but this is not a tip – drivers do not receive this money – so make sure not to deduct this charge from your tip amount.

GrubHub recommends leaving $5 or 20 percent for your delivery driver—whichever is higher. You should also consider adding a few extra dollars for large or complex deliveries, as well as when the weather is bad.

Grubhub no longer encourages customers to leave a tip for drivers, though they still can. Whereas the food delivery app used to set a default tip of 20 percent which customers could then adjust, the app now sets a default tip of zero percent and leaves it wholly up to users to decide whether to tip and by how much.

What's the Standard Tip for Delivery? Unlike tipping a waiter, there isn't a "standard" tip for delivery. Matt Maloney, co-founder of Grubhub, suggests a minimum tip amount of $5 or 20%, as long as the service was good.

Is 25 a good tip for Grubhub? ›

In reality, these values don't always go to the driver and they aren't considered a tip. The co-founder of Grubhub Matt Maloney pretty much set the standard for tipping delivery people in a Facebook post. He's a strong proponent of tipping, and Grubhub's website recommends a $5 or a 20% tip, whichever is more.

If you do not intend on delivering an order after reviewing its details, make sure to hit the Reject button. This allows Grubhub to promptly offer the order to another driver. Please note: rejections affect your acceptance rate, which is a part of determining your Program Level. Was this article helpful?

Drivers with total active delivery time of 25 hours per week or more on average over the entire quarter. The exact subsidy amounts will be established when Covered California posts its rates. Once your insurance is accepted, you can expect to receive a subsidy by the end of that month.

If you choose not to or are unable to use the Instant Cash Out feature, payments are sent on Thursdays via direct deposit. Payments reflect the amount you earned as a delivery partner with Grubhub but have not yet cashed out using the Instant Cash Out feature from Monday through Sunday of the previous week.

As gas prices rise nationwide, third-party food delivery companies are making changes to help offset the costs for drivers. Uber Eats and Grubhub will pay drivers more, and DoorDash is giving them cash back on gas as the companies look to maintain driver supply amid the cost pressures.

When a food delivery driver doesn't receive a tip, they only get the per-order rate and a set amount per-mile amount from Grubhub. That amount averages out to approximately $12 per hour before tips. Even though that amount is above minimum wage in many places, it does not include any health benefits or paid time off.

Yes, Grubhub drivers can pick up multiple orders from different restaurants. The Grubhub for Drivers App will automatically create a task lisk and sequence your pickup and delivery orders to create a positive driver and diner experience.

As you likely expect, the busiest times for food delivery coincide with when people eat – typically during the lunch and dinner hours. That means, in general, the best times to Grubhub are from 11 am to 2 pm (during the lunch rush), and from 5 pm to 8 pm (during the dinner rush).

The better meal delivery app for drivers ultimately boils down to how much you can earn delivering orders. It's estimated that GrubHub drivers can earn up to $23 per hour, and while DoorDash doesn't publish pay rates, there are ways drivers can earn more money on certain types of orders. Take alcohol, for example.

Is Grubhub a good side job? ›

Make Extra Cash on the Side

Some drivers prefer to drive full-time and others would rather work part-time. It's all up to you. If you just want to pick up some hours on the side, a Grubhub paycheck is a great side hustle that can supplement your income.

Which 1099 form will you get from Grubhub? Grubhub sends out two types of tax forms, depending on how much they paid you: 1099-NEC: For drivers who earned more than $600, but less than $20,000. 1099-K: For drivers who earned more than $20,000, from at least 200 trips.

How Much Should I Save for Taxes As a 1099 Delivery Driver (2023)? As an independent contractor, you should set aside enough to cover the 15.3% self-employment tax and at minimum 10% federal income tax.

Reporting your income under $600 for the tax year does not require any special IRS form or process as it is similar to how you would report any other income. The most important thing is to make sure you include it when calculating your taxable income.

If you made a net profit of $400 or more from your side hustle, you have to pay taxes on it, according to the IRS. "Any earned income is subject to taxes and when you work for yourself or are a 1099 worker, there are no taxes withheld so you will be responsible for saving for any taxes due," O'Leary says.

Phone and Service

And the portion of these expenses that you use for Doordash work counts as a tax write-off. Phone accessories like a car holder, car charger, and any others that are “ordinary and necessary” for your delivery job are also deductible.

Come tax time, you may have documents like a 1099 or a Schedule C where you can show that you're earning consistent money from DoorDash. Just be aware that you may be required to submit two years of tax returns to verify self-employment income for some things, like a mortgage.

If you deliver food for GrubHub, Postmates, DoorDash, or UberEATS, you are self-employed. As a delivery provider for these companies, you are an independent contractor rather than an employee.

If you've earned more than $600 in a calendar year as a driver, Grubhub will automatically send you a 1099 form by January 31.

Do I have to file taxes for DoorDash if I made less than $600? Yes. You have to file taxes and report all income you receive as an independent contractor, even if it's less than $600 and you don't get a 1099 form.

Can I use DoorDash as proof of income for a loan? ›

Documentation from the gig companies.

As lenders look at your income as an independent contractor, they're not looking at Grubhub and Doordash etc. as your employers, but more like they are your customers.

If you cannot pay the full amount, you will face penalties and owe interest. Another option is to pay quarterly estimated payments direct to the IRS. This could help you avoid a surprise tax bill and possibly keep you from paying any penalties.

Instead of pay stubs or bank statements, you can submit any compensation or subsidy records you have. These documents come in many forms, including social security statements, workman's compensation letters, unemployment statements, and more.

What Will Disqualify You From Driving? Criminal convictions and major violations on your DMV record can disqualify an applicant from being accepted by Grubhub. Individuals with felonies, sex offenders, dangerous criminals, or those with major driving violations will be automatically disqualified.

You still need to report that income on your tax return and pay taxes on it. Can you write off gas for Grubhub? If you drove your own vehicle for work-related purposes, you can write off the cost of gas and oil. You need to keep track of all of your receipts so you can provide documentation of your return.

Grubhub drivers are able to work when they want, whether that is part-time, full-time, or on their own schedule. For more information about Grubhub driver scheduling check out our Scheduling page.

With that in mind, it's best practice to save about 25–30% of your self-employed income to pay for taxes. And, remember, the more deductions you find, the less you'll have to pay.

The IRS refers to this as “nonemployee compensation.” In most circumstances, businesses that you do work for are required to issue Form 1099-NEC when they pay you $600 or more in any year. If you receive payments through online payment services such as PayPal, you might also receive form 1099-K.