W9 Form Iowa 2022 – A Internal Revenue Service tax form known as a W-9 is used to verify the identity of a person’s address and name. The confirmation can be requested for either an individual defined as an U.S. citizen or a one who is considered to be a resident alien. A W-9 form can also be known as an Application for Taxpayer Identification Number and certification form.
What’s the purpose of Form W-9? to do?
The W-9 data is used to create Form 1099. Form 1099 provides information about income received by the TIN holder which is not usually listed on a W-2. This includes, but is not limited to, earnings paid to a person under the terms of a contract; certain real estate transactions as well as dividends received from an investment, and other financial transactions.
Are you an employee or an independent contractor?
Employers are required to withhold income tax and also withhold Social Security, Medicare, and unemployment taxes on employees. If you’re an independent contractor it isn’t. This means that your employer pays Social Security and Medicare taxes. If you’re dismissed, you won’t be eligible to receive unemployment compensation.
Do I have to fill out Form W-9?
Yes. If you don’t respond to an legitimate request, your client will withhold taxes from your pay at a rate of 24%.10 The accounting department might also consider you a hassle and inform your contact not to do further business with you. Businesses are under a strict obligation from the IRS to obtain a completed Form W-9 from anyone they pay more than $600 to throughout the year. Infractions to this requirement could result in fines.
If you think the person who is requesting the form has no business asking for it, though, refusal is probably an ideal choice. Ask a tax professional if you have any questions.
The Bottom Line
W-9 forms are meant for independent contractors, also called freelancers. It is essential to fill out the form in a timely manner, but only if it is the right form to be submitted and the request has been granted. W9 Form Iowa 2022