W9 Form Maryland 2022 – A W-9 is an Internal Revenue Service (IRS) tax form that is used to verify the name, address and taxpayer identification code (TIN) in order to prove jobs or other reasons that generate income. A confirmation request can be made to either the U.S. citizen, or an non-resident alien. The form W-9 is also known as a Request for Taxpayer Identification Number and Certificate form.
What does Form W-9 serve for?
The information provided on a W-9 form is most frequently used to create an equivalent of Form 1099. A 1099 form includes information regarding any income that could have been earned from the TIN holder but would not normally be listed on the W-2 form. This can include earnings that are part of a deal, certain real property transactions, dividends from investments, and various other financial transactions.
Are you an independent contractor or employee?
Employers withhold taxes on income and withhold and pay Social Security, Medicare, and unemployment taxes to employees. If you’re an independent contractor, it will not. You’ll be responsible for the employer’s share of Social Security and Medicare taxes however you will not be eligible for unemployment insurance in the event of being laid off.
Can I refuse to fill out the Form W-9?
Certain. If you refuse in response to an legitimate request your client could withhold taxes from your paycheck at a rate of 24%.10 The accounting department may consider you to be a hassle and advise your contact to refuse to do further business with you. Businesses have a heavy obligation from the IRS to request a completed Form W-9 from anyone who they pay more than $600 for during the calendar year. Failure to comply can be a cause for fines.
Refusing to fill out the form is a wise choice if the requester has no business doing this. Consult a tax professional if you have any concerns.
The Bottom Line
W-9 forms are designed for freelancers, also known as 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 Maryland 2022