W9 Form South Dakota 2022

W9 Form South Dakota 2022An Internal Revenue Service tax form called a W-9 can be used to confirm the identity of a person’s address and name. It is possible to request confirmation for an individual who is identified as an U.S. citizen or a one who is considered to be a resident in the United States or as an alien. A W-9 form is also called an Application for Taxpayer Identification Number and the Certification form.

What’s Form W-9 Useful For?

The information obtained on the W-9 form is commonly used to make an equivalent of Form 1099. Form 1099 provides information regarding income earned by the TIN holder, which is not usually listed on a W-2. This can include, but is not limited to, income paid to a person as part of a contract and certain real estate transactions as well as dividends received from an investment, and other financial transactions.

Employee or Independent Contractor?

If you’re an employee your employer is required to withhold income tax and withhold Social Security and Medicare taxes and also pay unemployment tax on your earnings. You won’t have to pay if you’re an independent contractor. This means that you’ll be accountable for the employer’s share of Social Security and Medicare taxes, and that you won’t be eligible for unemployment compensation should you be laid off.

Can I refuse to sign Form W-9?

Yes. If you don’t respond to an legitimate request, the client can withhold taxes from your wages at an amount of 24%.10 The department that handles accounting might also find you a pain and notify your contact to refuse to continue business with you. Businesses are under a strict obligation to the IRS to obtain a completed Form W-9 from every person they pay $600 or more to during the year. You could face fines in the event of not complying.

If you believe the person who requested the form doesn’t have a legitimate reason for making the request, but refusing is likely to be the best option. If you’re worried, ask an accountant for advice on what to do.

The Bottom Line

W-9 forms are used by freelancers (also known as freelancers). It is crucial to fill out the correct form, but only if it’s the right form to fill out and the request has been approved. W9 Form South Dakota 2022