The title of Form W-9 is formally Request for Taxpayer Identification Number and Certification. Companies utilize this form to acquire the Taxpayer Identification Number (TIN) from licensed contractors, suppliers, and freelancers. The form likewise offers other personally recognizing details like your name and address.
The form functions as an arrangement in which you, as a licensed contractor or freelancer, are accountable for keeping taxes from your earnings. Your company keeps some of your earnings to cover federal earnings taxes and FICA taxes (which consist of Medicare and Social Security taxes) when you’re a full-time worker. Companies do not make in which withholding for licensed contractors.
In the end of the tax year, business you did work for will utilize the details on your W-9 to finish a 1099-MISC. This form describes all the payments made to you. A bank might likewise need you to report interest, dividends and capital gains made by their clients.
Most of the time, a business or banks will send you a blank W-9 form to finish prior to you start service with them. You can download a W-9 from the IRS site if you require to provide the form.
Who Has to Fill Out a W-9 Form?
W-9 Form are for self-employed employees like freelancers, independent service providers and specialists. If your company sends you a W-9 rather of a W-4, the business has most likely categorized you as an independent licensed contractor.
If you did numerous tasks for numerous business, you might fill out several W-9 Form in the very same year. You will likewise have to send brand-new W-9 forms any time you alter your name, organization tax, address, or name ID number.