W9 Form Hawaii 2022 – A Internal Revenue Service tax form known as a W-9, is used to confirm the name and address of an individual. A confirmation request is made for either a U.S. citizen, or an foreign resident. The W-9 form is called a Request for Taxpayer Identification Number and the Certification form.
What is Form W-9 used for?
The W-9 data is used to create Form 1099. The 1099 form provides information on any income that might have been earned by the TIN owner that is not typically listed on a W-2 form. This can include earnings that are part of a contractor real estate transactions, dividends paid against investments, and various other financial transactions.
Are you an employee or an independent contractor?
If you’re an employee, your employer will withhold taxes on your income and withhold Social Security and Medicare taxes as well as pay unemployment taxes on your earnings. This isn’t the case if you’re an independent contractor. This means that your employer is responsible for Social Security and Medicare taxes. If you’re laid off, you will not be eligible to receive unemployment compensation.
Can I choose not to fill out the Form W-9?
Yes. If you don’t respond to a legitimate request, your client may withhold tax from your pay at the rate of 24%.10 The accounting department may be able to see you as a nuisance and advise your contact not to do further business with you. Businesses have a heavy obligation from the IRS to collect a completed Form W-9 from any person that they pay over $600 to in the course of the year. The failure to comply could be a cause for fines.
Refusing to complete the form is a good idea if you feel the requester isn’t qualified for making the request. Ask a tax professional if you have any concerns.
The Bottom Line
W-9 forms are for independent contractors, also called freelancers. It’s crucial to fill in the correct form, but only if you’re confident that this is the correct form to be submitted and that your application is legitimate. W9 Form Hawaii 2022