What Is a W-9 Form and How Do You Fill It Out?

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It is required for contractors, part-time employees, and freelancers to complete the IRS W-9 form before being legally contracted by an employer or company. Signing your W-9 online is easy. Information on the W-9 form comes from IRS tax form Misc which details income paid to an individual in the United States which would otherwise be recorded on the IRS W-2 form used for hired employees.

Unlike freelancers, hired employees have income taxes deducted from each paycheck received from their employer. The W-9 form indicates to the IRS that the taxpayer is a freelancer or contractor. Contractors are not subject to backup withholding thereby making each individual contractor responsible for paying their individual taxes separate from their employer when filing their annual income tax return. Hiring an independent contractor is a great opportunity for sole proprietors, limited liability companies, and other small business organizations to bring on talented labor without the associated risks and commitment of hiring full-time employees.

Candidates are required to complete and sign the form before new employers are legally permitted to pay the contractor for their services per the arrangements of their employment contract. The W-9 requires contractors to fill in their personal details, such as their full name as it appears on tax documents, mailing address, and business names under which they operate. Completed and signed W-9 forms are then given to employers, who include relevant wage information and other data before sending them to the Internal Revenue Service at the close of the fiscal year.

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How to sign a W-9 form online

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Part 4. Examining Process

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Compliance is far less expensive than the alternative. This seminar will focus on addressing these issues and many more compliance and regulatory issues pertaining to IRS forms and S. In this two day workshop, participants will learn how to identify independent contractors and non-resident aliens. We will analyze case studies to:.

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