A straightforward manual for using this typical tax form.
Many companies and workers use the IRS Form W-9, sometimes referred to simply as a W-9, as part of their tax filing process. Only certain employees, as with other tax forms, will be required to complete a W-9 form for their company. Whether you want to know if you have to fill out a W-9 form when you start working, use this helpful information.
Why are W-9 forms necessary?
The IRS uses W-9 forms to estimate the amount of taxes that independent contractors and freelancers who do labor or other services for a firm would owe. Businesses are also excused from having to deduct and pay taxes on behalf of these independent contractors thanks to this form. A “Request for Taxpayer Identification Number and Certification” form may also be found on these documents.
Who is required to complete a W-9 form?
Employers that hire independent contractors must provide them a W-9 form to complete prior to the start of employment. Who qualifies as a “independent contractor” and must complete a W-9 form must meet a number of requirements. If any of the following apply to you:
- Declare your status as a “freelancer” or independent contractor.
- not a full-time worker for the company.
- More than $600 will be compensated for tasks completed by the company.
The W-9 form becomes increasingly prevalent during tax season as more firms rely on independent contractors and freelancers to do their tasks.