W9 Form Printable Vermont – An Internal Revenue Service tax form known as a W-9 is used to verify the name and address of an individual. A confirmation request can be submitted for either a U.S. citizen, or an foreign resident. Also called the Request for Taxpayer ID Number and Certificate form, the W-9 form can be requested.
What’s Form W-9 Useful To Do?
The information obtained on the form W-9 is commonly used to make a version of Form 1099. Form 1099 provides information about the amount of income that is earned from the TIN holder that is not typically listed on the W-2. This includes income received as part of a contract, certain real estate transactions, dividends against investment, and other financial transactions.
Employee or Independent Contractor?
If you’re an employee your employer will withhold taxes on your income and withhold Social Security and Medicare taxes, and pay unemployment tax on your earnings. It won’t if you are an independent contractor. That means your employer pays Social Security and Medicare taxes. If you are laid off, you will not be eligible to receive unemployment benefits.
Can I choose not to fill out Form W-9?
Sure. If you decline to respond to a legitimate request, the client can withhold taxes from your earnings at 24%. 24%.10 The department that handles accounting might be able to see you as a nuisance and advise the person you spoke to to not continue business with you. The IRS has a mandatory obligation for companies to obtain the W-9 form completed from each person who pays more than $600 per year. There could be fines if you don’t comply.
Refusing to complete the form is a best option if the requester isn’t qualified for making the request. Talk to a tax expert if you have any concerns.
The Bottom Line
Forms W-9 are used for independent contractors, sometimes referred to as freelancers. It’s essential to complete the form correctly–but only if you’re certain that it’s the correct form to be submitted and that your application is legitimate. W9 Form Printable Vermont