Upon hiring a company or individual to perform services to be used by your company or at your rental property, you need to receive a Form W-9 from each. If you are in the service industry as an independent contractor, you will need to fill out a W-9 form for each of your clients as well. Some of these providers are:
- Professional consultants
- Repair and maintenance
- Web or other marketing design
The W-9 forms provide information needed for the 1099-Misc form and lets you know if you need to deduct any federal income tax from payments made to the company for services, most often you don’t. You will also need one from anyone you paid rent – office, storage, or equipment.
Without the service contractor providing you with a valid Federal ID # (either their Social Security or a Federal TIN), you are required to withhold federal tax from each check you send to that contractor. The current backup federal withholding tax required is 28% of gross payment (subject to change at end of 2012). If you are required to withhold taxes, the tax is reported and paid at year end with form 945.
Get the printable W-9 form here: http://www.irs.gov/pub/irs-pdf/fw9.pdf
Do you have additional questions regarding Form W-9? Contact me at (715) 379-0116 or email me at email@example.com. You can also connect with me on Facebook or LinkedIn.