Contractor W9 Form – IRS Form W-9, known as a W-9 form, is one of the many tax files required by the IRS (Internal Revenue Service) to help precisely estimate the taxes owed by contract workers in an offered tax year. It’s a request for details about the contractors you pay along with an arrangement with those contractors that you will not be withholding earnings tax from their pay– specialists should pay their own taxes on this income.
Contractor W9 Form
The form, officially called Form W-9, Request for Taxpayer Identification Number and Certification, is usually utilized when an individual or entity is needed to report specific kinds of earnings.
The Contractor W9 Form assists companies obtain crucial details from payees to prepare info returns for the IRS. Taxpayers make use of the W-9 tax form to confirm their proper taxpayer identification number (TIN) and to certify that they are exempt to backup withholding.
Use Contractor W9 Form to offer your correct Taxpayer Identification Number (TIN) to the individual who is required to submit an information return with the IRS to report, for example:|Use Form W-9 to provide your correct Taxpayer Identification Number (TIN) to the person who is required to submit an information return with the IRS to report:}
- Earnings paid to you.
- Real estate transactions.
- Mortgage interest you paid.
- Acquisition or desertion of protected home.
- Cancellation of debt.
- Contributions you made to an IRA.
When to ask for a W-9 form or Contractor W9 Form
Form W-9 is essential for working with independent professionals and freelance employees. If your business pays individuals or small companies more than $600 each for finished work, and those individuals aren’t employed by you, you need to collect a W-9.
Your company is not needed to pay the Social Security or Medicare taxes or withhold income taxes on payments to individual contractors. Because of this, the IRS needs to understand who you’re paying so they understand who to gather from. Keep your W-9s saved firmly and utilize them at year’s end to report just how much you paid each professional.
To succeed with this objective, follow our Form W-9 instructions! Here’s what you require to do with W9 Form 2020:
- TIN. Give your Taxpayer’s Individual Number. SSN or EIN can be utilized.
- Name. Enter your birth certificate name, like TX Media LLC.
- Brand name. Write in your company name. (It can be either a pseudonym or a brand you’re working under).
- Company type. Select service entity type: LLC, Trust, Corporation S, collaboration, and so on.
- Optional. Check exemptions.
- Address. Detail your city, state, zip code and street address.