Current W 9 Form 2022 – A Internal Revenue Service tax form called a W-9 can be used to verify the address and name of the person. A confirmation form can be requested for either an U.S. citizen, or an non-resident alien. Also known as the Request for Taxpayer ID Number and Certificate form, the W-9 form is available.
What exactly is Form W-9 used for?
Most of the time, the W-9 information is used to create Form 1099. A 1099 form includes information regarding any income that could be received from the TIN holder but wouldn’t normally be recorded on a W-2 form. This can include earnings that are part of a deal, certain real estate transactions, dividends against investments, and various other financial transactions.
Independent Contractor or Employee?
If you’re an employee, your employer will withhold income taxes as well as withhold and pay Social Security and Medicare taxes as well as pay unemployment taxes on your wages. However, this won’t be the case if your are an independent contractor. This means that your employer will pay Social Security and Medicare taxes. If you are laid off, you will not be eligible to receive unemployment compensation.
Can I refuse to sign Form W-9?
Yes. If you decline to respond to an legitimate request, your client could withhold taxes from your earnings at the rate of 24%.10 The accounting department could consider you to be a hassle and advise your contact to refuse to engage in further business with you. The IRS is obligated for companies to obtain the W-9 form completed from each person who pays more than $600 per year. Failure to comply can result in fines.
Refusing to sign the form is a wise choice if the requester has no business signing it. If you’re concerned, ask an accountant for advice on what to do.
The Bottom Line
W-9 forms are meant for independent contractors, sometimes referred to as freelancers. It is essential to fill out the form in a timely manner, but only if it’s the right form to be submitted and the request has been approved. Current W 9 Form 2022