W9 Tax Form FAQ

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W9 Form FAQ’s
W9 Form Important Information
 
Looking for more information about W-9 Tax Forms? Want to know what exactly it’s about? Look no further! We know tax time can be overwhelming to say the least, so we want to make sure you’re prepared. Here is everything you need to know about W-9 Tax Form:

What exactly is Tax Form W-9 and what are they used for?

According to the Internal Revenue Service (IRS), if your company uses people for contract work (such as freelancers or subcontractors), you will need to require them to fill out a W-9 Form. This is completed so their taxpayer information is on file (in the event you will need to fill out a 1099 Form (for reporting of payment for services provided by non-employees). You should request a W-9 form for anyone doing contract work for your company.

Who needs to use Tax Form W-9?

This form is for:
  • Independent Contractors
  • Freelancers
  • Anyone who works for themselves
** It’s important to note Form W-9 is not required for independent contractors who are not U.S. citizens and U.S. resident aliens. In those cases, a Form W-8 may be required.

Is there a minimum amount to report?

Yes there is. The minimum amount to report is $600. If, in one calendar year, you pay a freelancer or subcontractor anything under $600, you do not need them to fill out the Form W-9. However, if you pay someone $600 or more, you will need to report that the following year.

What is required on the form?

This form is pretty simple. It requires a name, address and Social Security number (or Employer Identification Number).

Does the W-9 Form allow employees to have taxes withheld from their paychecks?

No, it does not. Independent contractors are liable for taxes that are assessed to their income. They are normally required to submit quarterly estimated tax payments to the IRS. The Form 1040-ES is used by independent contractors to submit these payments to the Federal government.

What are some helpful links regarding the W-9 Form?

Modern Business Associates is an HR company that focuses on payroll and HR outsourcing.  We routinely work with clients on W-9 Tax Forms. As a Professional Payroll and HR outsource organization, our clients rely on us to help them effectively deal with these kinds of topics.