Do Landscapers Fill Out W-9 Form To Homeowners For Goods And Services?

I'm a freelance writer—a career independent contractor—then I've come up to know Form W-9 very well. And equally far as tax paperwork goes, information technology'south by far my favourite!

When I'thousand filling out Form W-9, information technology'due south considering I've won a new client. The form gives me an easy way to submit all my vital information to the client so I can beginning working, and they tin start paying me. What's not to like about that?

What is a W- 9 revenue enhancement course? What is the purpose and apply of the W-9 Form?

Form W-9, Taxpayer Identification Number and Certification, is primarily used to provide the information your client needs to upshot you a Form 1099-MISC at the stop of the year. Course 1099-MISC documents non-employee compensation and other types of income. It includes information like to that found on a Form W-two, Wage and Tax Argument.

A company or individual may besides request a W-ix from you for real manor transactions, mortgage interest payments, conquering or abandonment of secured property, cancellation of debt, or your IRA contributions. Those are less common, however.

Usually, the party requesting a W-nine Tax Form will provide a blank one for you to fill up out. You tin can also hands download the course from the IRS website. Only the political party that requested information technology needs a re-create. The IRS does not.

The W-9 asks for five pieces of information: your proper name, business concern name (if applicable), accost, taxpayer identification number, and the type of business organisation entity you operate. It's pretty painless as far every bit tax paperwork goes.

Course W-9 vs Course W-four

The business yous work for must classify you lot every bit an contained contractor or an employee. If you're an independent contractor, the visitor should request a Form W-9 from y'all. If you lot are an employee, they should ask you to complete Class W-4 and so they can withhold payroll taxes.

Under a W-9, the company volition not withhold any taxes for you lot. You are responsible for ensuring the right corporeality of taxes are paid to the IRS. And when it comes to Social Security and Medicare taxes, yous have to pay both the employer and employee's share.

It can exist a niggling confusing to differentiate whether you should fill out Grade West-9 or Course W-4 based on the actual work performed. A better estimate is the circumstances effectually the working relationship. More often than not, the more command an employer exerts over what a worker does and how they practise information technology, the more likely that person is an employee and not an independent contractor.

Another quick way to tell is to determine whether the concern aspects of the human relationship are controlled by the payer. That includes how the worker is paid, whether expenses are reimbursed, which party provides tools, supplies, etc.

If the employer controls those details, the worker is more likely an employee. If employee benefits are offered, like pension plans, paid vacation, and matching 401(grand) contributions, the worker is probably an employee.

Sometimes an employer might try to save money by classifying an employee as an independent contractor. By doing so, they aren't on the hook for paying their share of Social Security and Medicare taxes on the employee's income. But, if that happens to you, your employer'due south "savings" will come out of your pocket. That's why it's important to address the situation swiftly if it arises.

Common questions about Form Due west-9

• You must send a new Due west-ix to active customers or clients whenever your data (name, business name, address, or Social Security number) changes.
• By law, you are simply obligated to provide a Westward-ix to parties that intend to pay yous interest, dividends, non-employee compensation, or any other blazon of reportable income. If someone unexpected asks for a W-9, ask them why they demand information technology. If their respond doesn't align with whatsoever valid reason, you legally don't have to provide ane.
• If a business appropriately requests a W-nine and yous do not submit 1, yous'll likely exist subject to backup withholding upward to 28 per centum on your payments.

Watch out for red flags

Although it's a bones and widely used taxation document, that doesn't mean you should have whatever less intendance with handling Form W-9 than you lot would handle other tax and financial documents. Hither are a few things to expect out for:

• The person or business asking you for a Due west-ix seems shady. In general, you should be careful giving out sensitive information like your name, accost, and Social Security number. Make certain yous're reasonably comfortable with the person or organization request for a Due west-ix before you supply that data.
• Employ only secure channels to transport a W-9 taxation class. If y'all choose to electronic mail Class W-9, make sure to transport it as an encrypted attachment. You can likewise utilise another secure delivery method, such as hand delivery or regular mail.
• The purpose of a Due west-9 request is unclear.If you're not certain why the requestor wants a Course West-9 from you, ask them what tax documents they'll use it to ready for you.
• You thought y'all were getting a Form Westward-4. If you're starting a new job and the employer wants a W-nine instead of a W-4, clarify whether you're an employee or independent contractor. It's against the law for them to require yous to work like an employee but pay you lot like a contractor.

Special Form W-9 information for Limited Liability Companies

• If the tax status of your Limited Liability Company (LLC) is separate from yous,

  such as a partnership, C-corporation, or S-corporation, list the LLC name, its federal employer identification number, and check the advisable revenue enhancement classification box on the W-9 revenue enhancement form. Practise non check the "limited liability visitor" box.

• If the LLC is endemic by some other LLC, cheque the "limited liability company" box. Likewise, indicate the revenue enhancement nomenclature of the parent LLC.
• If the LLC is owned by a single person, listing the name of the owner on the "name" line and the name of the LLC on the "business organization proper name" line. The Internal Revenue Service (IRS) would rather have the possessor's Social Security number instead of the LLC'southward federal employer identification number.

• Are You a Freelancer? Become a Handle on Your Taxes
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• Ways to Save for Retirement on Minimal Income

Source: https://blog.taxact.com/everything-you-need-to-know-about-form-w-9/

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