If you employ independent contractors or freelancers and pay them, then you also have to deal with some documents to record this kind of costs and notify theIRS. The basic paper mainly necessary in this matter is the w-9 tax form. You have to supply people with this legitimate tool to ga...
W9 forms provide businesses with the tax information they need to complete and file Form 1099—a type of information return thatindependent contractors useto file tax returns and the IRS uses to track nonemployee compensation and prevent underreporting. If your business has employees, you are legall...
In addition to paying independent contractors, 1099 forms are used to report other income to the IRS. Other income may include income earned through interest on a bank account with a financial institution, debt cancellation, or proceeds from real estate transactions or mortgage interest. Form W-4...
A Form W-9, also known as theRequest for Taxpayer Identification Number and Certificationis one of the several tax-related forms required by the Internal Revenue Service (IRS) to process tax information. It is drafted and filled by all independent contractors who have been hired by a business ...
may be required to fill out a Form W-9. The form is also commonly used by employers who need to request identifying information from independent contractors and freelancers they plan to pay. Essentially, anyone who expects to receive payment for work or services rendered, whether as a business...
Form W-9 is strictly used to get information from independent contractors, whereasForm W-4is filled out by employees. W-4 forms include more information than a W-9, including the employee’s marital status and additional deduction amounts. For more details on IRS Form W-4, you cancheck ...
W-9 Tax forms with glasses and lettersBill Oxford/Getty As a small-business owner, if you contract to perform services, you must fill out a Form W-9 for each person with whom you contract. Your client will use this form when accounting for payments made to you. It is your responsibilit...
Read More:Independent Contractor Tax Deductions Mortgage Calculator Home value Down payment Down payment in % Loan amount Loan term in years Interest rate Quantity Payment Total Who Requests These Forms? Businesses that pay vendors, suppliers, gig workers or contractors, need to collect Form ...
Two commonly used forms for tax purposes are Form W-9 and Form W-4. Though similar sounding, they have very different purposes, recipients, and uses. Form W-9 serves the aim of requesting information from a taxpayer (usually an independent contractor or freelancer) in order to file taxes....
In addition to being careful of how you send a Form W-9, be respectful and considerate on how you store Form W-9 for independent contractors that work for you. Substitute Form W-9 The IRS allows taxpayers to create and use their own Form W-9. This variation is referred to as a subs...