W9 Form California 2022 – The W-9 form is an Internal Revenue Service (IRS) tax form that is used to verify the identity of a person’s address, name as well as taxpayer identification number (TIN) in order to prove reasons of employment or for other income-generating activities. 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, a form called a W-9 is available for request.
What’s Form W-9 Useful To Do?
The data gathered from a W-9 form is most commonly used to make an alternative version of Form 1099. A 1099 form includes information about any income that may be received by the TIN holder that wouldn’t normally be recorded on the W-2 form. This includes, but is not limited to income paid to a person as part of the terms of a contract; certain real estate transactions or dividends on an investment, and other financial transactions.
Are you an employee or an independent contractor?
If you’re an employee, your employer will withhold taxes on your income, withhold and pay Social Security and Medicare taxes and will also collect unemployment tax on your wages. If you’re an independent contractor, it won’t. That means the employer will be responsible for Social Security and Medicare taxes. If you’re laid off, you won’t be eligible to receive unemployment compensation.
Do I have to sign Form W-9?
Yes. If you don’t respond to a legitimate request your client may withhold tax from your earnings at an amount of 24%.10 The accounting department may be able to see you as a nuisance and advise your contact to not engage in further business with you. The IRS has a strict requirement to businesses to obtain W-9 forms that are completed from any person they pay more than $600 per year. You may be subject to fines if you don’t comply.
Refusing to complete the form is a sensible option if you believe the requester isn’t qualified for doing this. Talk to a tax expert if there are any questions.
The Bottom Line
W-9 forms are designed for freelancers, also known as freelancers. It’s important to fill out the form in a timely manner, but only if you’re sure it’s the right application form and that the application is legitimate. W9 Form California 2022