The hourly rate on a listing is only part of the story. How you're paid, when, through which service and what happens with tax matter just as much. This guide explains the basics in plain terms.
This is general information, not tax or legal advice. Tax rules depend on where you live. Check your local rules, and talk to a local accountant if you're unsure.
How rates are set
Most AI training work is paid by the hour. Some is paid per task, and a few data-collection projects pay a fixed amount per recording.
The rate usually depends on two things:
- The skill the role needs. General rating pays the least. Expert review in law, medicine, finance or coding pays more.
- Where you live, on some platforms. This is the part people miss.
Our research found a clear pattern. Platforms that sell large volumes of simple work often price by country. Appen's own job posts show it: the same Vietnamese-language voice recording project was posted at $25 in the US, $15 in Taiwan and $5 in the Philippines.
Expert marketplaces such as micro1 and Mercor tend to put the rate on the listing instead, so a qualified person anywhere sees the same number. Neither company says this in writing, so treat it as a strong pattern, not a promise.
Rates shown on a listing are usually what you're paid for logged, approved hours. Handshake AI's page, for example, says its rates are posted upfront and don't change mid-project.
You're a contractor, not an employee
On almost every platform you work as an independent contractor. That means:
- No guaranteed hours. You're paid for work you do, and work can stop.
- No sick pay, holiday pay or pension from the platform.
- You handle your own tax in most cases (more below).
- You can't usually work through your own company. Mercor's docs say it pays people as individual contractors and doesn't accept business-entity tax forms.
There are exceptions. Some language vendors hire as employees in certain US states. RWS TrainAI, for example, has posted rating roles at $21.50 an hour on a W-2 (employee) basis. If a listing says W-2 or "employee", tax works differently, and the employer withholds it.
How the money reaches you
Platforms use different payout services, and that affects where you can be paid and how much you lose in fees.
| Service | Who uses it (from public docs and our research) | Worth knowing |
|---|---|---|
| Stripe | Mercor's main method | Needs identity checks; Mercor's docs say Stripe holds the first payout for 7 days |
| Wise | Mercor in some countries, including Brazil and Turkey | Usually cheap for currency conversion |
| Deel | Reported for Handshake AI | Contractor payroll service |
| Payoneer | Several crowd vendors | Can charge an annual fee at low earnings |
| PayPal | Several crowd vendors | Not available for receiving money in every country |
| Platform wallet | micro1 | You withdraw from the wallet to your chosen method |
Payout rails can also decide who gets in at all. Our research found Pakistan is not on Mercor's Stripe list.
Fees matter too. OneForma caps PayPal payouts at $300 a year and then moves people to Payoneer, which its help page says charges $29.95 a year if you earn under $6,000.
Before you apply, check that the platform can pay out to your country. It saves a lot of wasted screening.
When you get paid
Most expert platforms pay weekly. Mercor's docs describe a weekly cycle: hours close on Friday (India time), payouts are processed by the following Wednesday (US Pacific time), and most funds arrive on Thursday. micro1 is reported to use weekly invoicing. Others pay every two weeks or monthly.
Approval isn't automatic. Platforms review logged hours before paying. Mercor's docs say hours can be withheld for policy violations, low-effort work or time logged while not actually working, after a human review.
Invoicing
On most expert platforms you don't write an invoice by hand. The platform turns your approved hours into a payment. Some, including micro1, are reported to have you submit or confirm a weekly invoice in the platform.
Either way, keep your own records:
- Hours worked per day and per project
- Each payout, the date and the fees taken
- The exchange rate on the day you received it
You'll want these at tax time, and if a payment ever goes missing.
Tax: what platforms do and don't do
For most contractors outside the US, the platform withholds nothing. You receive the full amount and you're responsible for declaring and paying tax where you live.
Mercor's docs are a clear example. They say Mercor doesn't deduct tax from payments and that contractors handle their own local tax. People outside the US fill in a W-8BEN form, which confirms they're not a US taxpayer. US citizens and residents fill in a W-9, and may get a US 1099-NEC form at the end of the year.
Other platforms may work differently, and we haven't confirmed each one's tax setup. Check the platform's help pages before your first payout.
What this usually means for you:
- Set money aside from every payout. You may owe income tax, and in some countries social contributions too.
- Find out if you need to register as self-employed or as a sole trader.
- Check whether you must pay tax in instalments during the year, rather than once at the end.
- Check tax treaties if you're outside the US. The W-8BEN exists partly for this.
Again: we're not tax advisers. Rules vary a lot between countries. Check with your local tax authority or an accountant.
Red flags around pay
- Anyone asking you to pay to unlock earnings or "release" a payment. That's a scam. See how to spot a remote AI job scam.
- Payment complaints. Our research found reports of withheld pay or deactivations before payout at some platforms, Alignerr most of all. Read recent reviews before you put in many hours.
Where to go next
Each of our platform pages explains what that platform hires for. When you're ready, pick a role that's hiring now from the job list or check this week's tracker.
Some Apply links are referral links: we get a bonus if you're hired, it costs you nothing and the application is the same.