All employed contractors and staff members have to learn how to work with this frequently used form in order to inform their employers about the amount of money earned. Without this information, a 1099 cannot be provided meaning that some taxes will not be paid as necessary. A W-9 is doesn’t look fancy and can be easily confused with another blank. Pay attention when downloading it from the official website.
This is an example of a frequently used document filed to IRS in case of engaging in any sort of contracted work or financial activities. All working freelancing outsourcers should be informed about how W-9s work.
Fill in the Blanks
Section 1 is the foremost important part. From box 1 through box 7, provide all required info:
- Full name including your middle name.
- The official business label.
- Define your legal position.
- Define your role in the contract. Add exemption code if it is required.
- Provide your full address.
- Other things that may be relevant.
Go to Part I. There are other critical pieces of information that must be put together. Depending on details of your contract with the employer, don’t forget to state your security, taxpayer, and employer ID. Assistants will be glad to remind you them if you call the IRS.
Go to Part II. While everything else is a prerequisite, this page will legally bind you. By signing and putting down the date, you are confirming that everything is correctly stated. This confirmation means that if you are caught lying, you will be subjected to legal actions against you in court. Be careful and double-check the info.
When completing any kind of work, never forget to prepare a W-9. Remember that all contractors have to provide a detailed 1099 if any outsourced or contracted works exceed the total annual amount of 600$.
W-9 is also required if you are investing in real estate, collecting payment interests, working with secure properties, cancelling debts, and even going for an IRA investment.
All active contractors and employees must know in details how to work with a W-9 form which is one of the most frequently used documents to send to the IRS when working for a client.