Did you know that W-9 forms do not expire? Or that you need to collect them as a business owner more than you probably think you do?
If your company hires independent contractors or another company to provide a service, you need to get a W-9 form. This is to ensure you fill out your taxes properly and to hold them accountable for filing theirs.
You may be wondering how to get a W-9 form. Keep reading to find out how!
What Is a W-9 Form?
A W-9 form is a document that employers must file with the IRS to claim tax exemption for payments made to employees. It is also required when an employer pays an individual $600 or more in any calendar year.
The form includes information about the employer’s name, address, and taxpayer identification number. Employers must provide the employee with a copy of the completed form and keep it on file for six years.
The W-9 form determines the correct withholding amount for income tax purposes. It also ensures that the individual is eligible to receive the tax deductions and credits they are entitled to.
Who Files a W-9?
Any person receiving $600 or more in cash wages during the year must file a W-9 Form with the IRS by January 31st of the following year. This includes:
- Independent contractors
- Self-employed persons
- How to Get a W-9 Form for My Business
You may be wondering how to get a W-9 tax form. But don’t worry! You can download one from the IRS website to fill out electronically or with a pen.
The IRS updates forms regularly, so you must make sure you have the correct documentation. It’s best to download a new file each time you need to have someone fill out a new W-9 form.
How to Fill Out a W-9 Form
While you will be sending the form for others to fill out, it’s a good idea to know how to do it. This way, you can guide if someone needs assistance.
When you know how to create a W-9 form then it will be easier for you to help others. To do this, follow the steps below. Then you can do better as a service provider. Remember that filling out the W-9 form is a very simple task, you just need to follow the correct strategy.
Again, filling out a W-9 form is straightforward. First, they put in your legal name and address.
If the person you hired has a company, they will also include the legal entity name. If they are a sole proprietor, they need to include that in the business name box.
Next, they need to put in the address and tax identification number. The tax identification number is either the federal ID number or their social security number. It will depend on how they have their business set up.
The form asks if the person has any exemptions, but it’s ok to leave this blank. The person must sign it once it’s completed.