W9 Form Delaware 2022 – A W-9 form can be described as an Internal Revenue Service (IRS) tax form used to verify an individual’s name, address and taxpayer identification number (TIN) for jobs or other reasons that generate income. A confirmation request can be submitted for either the U.S. citizen, or an foreign resident. Also called the Request for Taxpayer Identification Number and Certificate Form, the W-9 is available for request.
What’s Form W-9 Useful for?
Most of the time, the W-9 information is used to create Form 1099. The form 1099 contains details regarding any earnings that might have been earned by the TIN owner that is not typically listed on the W-2 form. This could include income earned as part of a contract, real property transactions, dividends from investments, as well as other financial transactions.
Are you an independent contractor or employee?
Employers can withhold tax on income and also withhold Social Security, Medicare, and unemployment taxes to employees. If you’re an independent contractor it isn’t. This means that you’ll be accountable for the employer’s share of Social Security and Medicare taxes as well as not receive unemployment compensation should you be laid off.
Do I have to sign Form W-9?
Yes. If you decline to respond to a legitimate request, your client will withhold taxes from your paycheck at an amount of 24%.10 The department that handles accounting might consider you to be a hassle and inform your contact to not engage in further business with you. The IRS has a strict requirement for businesses to collect a completed form W-9 from every person who has paid $600 or more during the year. You may be subject to fines for not complying with.
If you think the person who requested the form doesn’t have a legitimate reason for having it, however, refusal is probably an excellent idea. Contact a tax professional should you have questions.
The Bottom Line
The W-9 form can be used by independent contractors (also known as freelancers). It is essential to fill out the form correctly, however, only if it is the right form to fill out and the request has been approved. W9 Form Delaware 2022