Is W9 Form Mandatory – Request for Taxpayer Identification Number and Certification is the official title of Form W-9. Employers utilize this form to obtain a contractor’s, freelancer’s, or vendor’s Taxpayer Identification Number (TIN). Additionally, the form collects additional personally identifiable information about you, such as your name and address.
IRS Form W9 acts as a contract that you are responsible for withholding-taxes from your income as a contractor or freelancer. If you are a full-time employee, your employer deducts a portion of your earnings to meet federal income taxes and FICA taxes (which include Medicare and Social Security taxes). Employers do not withhold taxes from contractors.
Is W9 Form Mandatory
The information on your W-9 will be used by the company you work for to produce a 1099-MISC at the end of the tax year. This statement summarizes all payments made to you.
Typically, a business or financial institution will provide you with a blank W-9 form to fill out before you start a business with them. In case you are required to print the form, you may do so by downloading it from the link we provide below.
Who Is Required to Complete the W-9 Form?
W-9 forms are used by self-employed individuals such as independent contractors, freelancers, and consultants. You must use it if you earned more than $600 without being recruited as an employee during that year. If a company gives you a W-9 form instead of a W-4, you have been classed as a freelancer or independent contractor.
Businesses can use the W-9 form to keep track of their external staff. This implies you do not need to send the IRS your W-9 form. Rather than that, you email it to your supervisor or the human resources department of your employer. If you worked for many companies in the same year, you might fill out multiple W-9 forms. Additionally, you must submit new W-9 documents if your name, business name, address, or tax identification number changes.
Download and Fill out your Is W9 Form Mandatory
How to Fill Out Is W9 Form Mandatory
Filling out a W-9 is rather simple. The form is only around a half-page long, not including the instructions. Employers should enter their company’s name and employer identification number (EIN). After then, you’ll complete the form line by line.
Line 1 – Name.
Line 2 – Business name.
Line 3 – Federal tax classification.
Line 4 – Exemptions.
Lines 5 & 6 – Address, city, state, and ZIP code.
Line 7 – Account number(s)
Part I – Taxpayer Identification Number (TIN)
Part II – Certification
Returning Your Form W-9
When the business that hired you asks you to fill out Form W-9 because the IRS requires it, they will give you the form to fill out. Complete it promptly and return it to them, preferably in person or, more convenient, by email.