On the other hand, if the LLC is a partnership, an S corporation, or another type of LLC, then insert your business’s name on this line. To be safe, some businesses will send out Form W-9 to every single one of their contractors to fill out ahead of time, even if they don’t expect them to perform $600 of work for them. Some accountants will even suggest collecting a W-9 before issuing any payments at all to encourage people to file up-front. Workers with W-9 status don’t usually have income taxes withheld from their payments. Instead, an independent contractor’s clients report payments to the IRS, and it’s up to the worker to settle up, usually through quarterly estimated tax payments.

The process of “backup withholding” is one of the unfortunate consequences that can result from information submitted to the IRS that does not match IRS records. The IRS requires that businesses impose and remit a 24% backup withholding tax on all future payments made to a contractor until the IRS receives the correct information. Businesses are required to take care of tax withholding for employees and pay Social Security and Medicare taxes on their wages. Contractors have the responsibility of paying their own state and federal income tax and consequently may make business deductions, such as the costs of keeping a home office.

• Certain discount offers may not be valid for mobile in-app purchases and may be available only for a limited period of time.
• If your business has any employees or operates as a corporation or partnership, it probably needs an EIN to do business and file with the IRS properly.
• More traditional employees will fill out a W-4 at the start of their employment.

How to File IRS Form W-9

Using external experts can also be a cost-effective way to get high-quality results without making a long-term commitment to a new employee. For instance, many businesses work with top-tier freelance copywriters and creatives on a project-by-project basis, because hiring them full-time could put a strain on the budget. Furthermore, some companies rely on assistance from independent contractors, such as accountants or occasional part-time help, to shore up schedules during their busy seasons.

Requester of Form W-9 – Main Contents

Form W-9 ends with a signed declaration by the contractor that they have inputted the information truthfully and that they are authorized to work in the U.S. In addition, the form may include a specific set of instructions provided by the IRS. The information obtained on a W-9 form is most often used to create a version of Form 1099. A 1099 form contains information about any income that may have been received by the TIN holder that would not normally be listed on a W-2. Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Under privacy laws, information collected in a W9 form cannot be disclosed for any purpose other than contractor work.

Payess can also use the fillable form to include the information then print out the completed form and sign it. Accurately completing a W-9 form begins with ensuring all personal details, such as name and address, match those registered with the IRS. This precision prevents mismatches that could lead to IRS scrutiny or delays in processing related tax documents. Legal Templates LLC is not a lawyer, or a law firm and does not engage in the practice of law.

Regularly reviewing and updating W-9 records ensures businesses have the most current information, aligning with IRS requirements for accurate reporting. You’ll need to have Form W-9 completed by a freelancer or independent contractor before they begin working for your company. And as important as it is to an employer that a worker fill out the W-9 accurately, it’s just as important to the contractor.

How Do I Get a Free Fillable W-9 Form for 2025?

A W-2 is a wage and tax statement for employees that the business fills out and files with the government at the end of each tax year. The form is filled out by independent contractors who provide services to companies that have not hired them as full-time employees. If you are paid $600 or less in a single year by a company, you will not need to fill out the form for that company. The entity paying the taxpayer (the person or business rendering the services) receives the W-9 form from the taxpayer. When reporting the payments made to the taxpayer at the end of the year, the organization uses the data on the W-9 form to create and issue Form 1099-MISC or other applicable tax forms.

How To Fill Out Form W-9

Always be sure you navigate to the official IRS website — don’t leave it up to your search engine. Businesses use W-9 forms to generate Form 1099-MISC at the end of the year. Discover what a W-9 form is and why it’s essential to your business. Accessing a fillable W-9 form for – simply visit the IRS website and download the latest version.

• Your client, bank, or other financial institution has to send you a W-9 themselves if they need you to fill one out.
• Both W-2 and W-9 forms are tax forms for workers in any kind of business.
• Protect the information on this form by using an encrypted email, hand delivery, or mail.
• Unlike many other tax forms, the W-9 is relatively easy to fill out.
• This name should match the one that appears on your tax return.

Unlike the W-9 form, the W-4 form specifies the taxes that will be paid on the employee’s behalf. All new employees must sign this form to verify their tax situation, such as tax exemptions and status, so you know the tax amount to withhold from their paycheck. The IRS W-9 form, also called a “Request for Taxpayer Identification Number and Certification,” is the form that is used to gather the legal name and tax identification number (TIN) of an individual or business entity.

Certify the form.

You might find it easiest to have professionals submit the form to you when they sign a contractor agreement before they begin working on a project. If a person is filling out the form for a partnership, limited liability company (LLC), or another type of corporation, the individual should put the name of the legal entity on line 2. For example, a partnership or single-member LLC would put its “doing business as” name here. If any one of the joint payees who hasn’t established foreign status gives you a TIN, use that number for purposes of backup withholding and information reporting. However, the following payments made to a corporation and reportable on Form 1099-MISC, Miscellaneous Information, are not exempt from backup withholding.

If they’re a business, then an Employer Identification Number (EIN) applies. It might be the case that individuals filling out a W-9 don’t yet have a Tax Identification Number (TIN). Depending on their citizenship or entity status, they can apply for a TIN and write “applied for” in Part I of the W-9. They will be subject to backup withholding until they receive their TIN and submit an updated W-9 to the payer. Contractors must fill out a W-9 form accurately to w-9 ensure compliance. Although the form comes from the IRS and is used to collect taxpayer information, individuals don’t submit the form to the IRS.

Adobe tools transform and speed up your team’s workflows, removing mundane tasks—such as sending a document to multiple recipients at once—and allowing you to focus on the details of your business that matter most to you. Send your contractors a blank W-9 form digitally to make it easier for them to fill it out and return it to you. The Adobe Acrobat Library contains free downloadable templates for Form W-9 and other important tax documents you might need to send, like Form W-4 and the IRS I-9 Employment Eligibility Verification.

Who Uses Form W-9 and Why?

This article gives information about the W-9 form for both businesses requesting this form and those who must complete it. This article provides insights into the steps required to complete a W-9 form accurately and highlights common pitfalls to avoid. The IRS TIN Matching program enables those that issue information returns to verify TINs with the IRS. The IRS may penalize W-9 requesters that fail to report a correct TIN on a return. The person or entity you are doing business with uses the W-9 to collect some of your personal or business information, the most important of which is your Taxpayer Identification Number (TIN). If you submit the W-9 as an individual, your TIN is typically your Social Security number.

But come year end, having that completed form on file will be time well spent and can prevent penalties in the future. If an independent contractor or vendor refuses to provide a signed W-9, explain to them why it’s necessary. If they still balk, it might be a good idea to look elsewhere. Simply put, Form W-9 is an IRS form businesses use to gather essential information about the contractors and freelancers they occasionally employ.

Additionally, it should also be filed with the state, if required by your state. Backup withholding is when a paying entity takes 24% of your payment amount in federal income taxes, even though independent contractors are generally responsible for paying their own taxes. Although not a required item, this line may include an exemption code if the payee is exempt from having taxes withheld. Most commonly, this line is completed for certain businesses or entities and does not apply to individuals. If applicable, the W9 instructions list the exempt payees, codes, and types of payments that should be used for each code.