A W-9 is one of the commonly used forms used by the Internal Revenue Service. It is basically asked by people who pay you money for your services. Requesting a W-9 is extremely important if you are taking the services of a freelancer or an independent contractor. In this form, the person whose W-9 has been requested will give his Taxpayer Identification Number (TIN), which is basically the Social Security Number, to the entity, which has to make the payments against the work done by the worker.
Requesting a W-9 is extremely important if you are taking the services of a freelancer or an independent contractor.
The employer uses this form to make the employee pay checks for the year and also for filling out the W-2 form at the end of the year. It helps the employer to keep a track of the payments he has made in your name. As such, this form is not submitted to the IRS, but only kept as a record in the file of the employee. Now, if you have requested for a W-9, then at some point in the future you will have to give out the 1099 tax form to the employer, where the gross payments you make, will be shown. This is important for the employer. The employer will need this 1099 form, to fill the tax returns at the end of the year. A 1099 will only be needed if the employer is being paid more than $600 in a year, otherwise it is not needed. But if you do obtain it as an employee, you need to send this to the IRS.
How to fill up the W-9
As an employee, you must give out the correctly and carefully filled W-9. When the employer is requesting a W-9 from you, that means he will keep a proper record of you r payments and this is also very important to you. Fill your full name, the one which is on the first line of the federal income tax returns. If you running a business by some other name, then write that name on the second line. Then, select whether you are working in sole proprietorship, partnerships, or any corporation. After completing the mailing address section you will have to give your Taxpayer Identification Number (TIN), which generally is the Social Security Number. A non-resident individual will only give their TIN as they do not have a Social Security Number. Then sign the form with the date.
Image credit: lovemybrit.com