DoorDash driver tax rules and new dasher onboarding pauses explained

DoorDash classifies its couriers as independent contractors, not employees. Because of this status, drivers receive a 1099‑NEC for tax reporting and must handle their own payroll taxes, including Social Security and Medicare, as well as quarterly estimated taxes and expense deductions.

The company also periodically pauses accepting new dashers in specific markets. These pauses are driven by supply‑and‑demand considerations such as market saturation, seasonal order fluctuations and broader economic conditions. When order volume does not justify additional drivers, DoorDash limits onboarding to protect earnings for existing dashers and maintain delivery speed for customers.