Form W-9 is a critical IRS form that provides information needed to send back a 1099. Learn more about Form W-9 with Panther.
Form W-9is a tax form that communicates a contractor or freelancer’s Tax Identification Number (TIN) to another person, business, bank, or other financial institution. Learn more about Form W-9 and how to fill it out.
There are over a thousand IRS forms for reporting various types of income, tax information, and other pieces of financial data. If your company hires freelancers and independent contractors, you’re likely familiar with many of these forms, especially Form W-9.
Form W-9 is a simple IRS form that serves as an information return and allows a company or business to confirm a person’s name, address, and taxpayer identification number (TIN).
There are a few situations that might require a W-9 form:
Note: All the information found in a W-9 is sensitive information. If it lands on the wrong hands, identity theft may occur. So, self-employed folks should always double-check that they’re sending it to the right person. Companies and those who receive Form W-9 need to ensure they’re keeping the data safe and secure.
Note that your company will never send a W-9 to the IRS. Instead, you’ll need to send back Form 1099 to anyone your company has paid$600 or more to in a single year. If the amount paid is under this threshold, the 1099 form isn’t required; instead, it's reported as the TIN holder's income.
The information provided by the self-employed individual should remain undisclosed as their privacy is protected by law.
Filling a W-9 form isn’t as complicated as it may seem. It’s, in fact, the most straightforward IRS form to fill out.
The name entered here should match the name on the tax return.
This could be a business name, DBA, or disregarded entity name. A single-member limited liability company is the most common type of disregarded entity. However, S corporations and sole proprietorships don’t fall under this category.
This spot can be left blank if there is not a business name (common for solopreneurs and sole proprietorships).
This defines the independent contractor’s status as classified in the federal taxes. This is whatever business entity applies to the form filler: entities could include S corporation, C corporation, sole proprietorship, partnership, limited liability company, trust/estate, or other.
This step is for specific businesses and entities, and individuals don’t need to fill this section out. If it applies to you, you will need to provide a letter or number code indicating the reason.
The fifth step requires filling in your address, city, state, and zip code. Preferably, add the address that you use on your tax return.
This is an optional step where you can provide your requester's name and address. This box is handy as it can help the contractor keep track of the person or business they disclosed their tax identification number to.
This part is termed Part I by the IRS. You must provide your entity’s TIN which can be either your employer identification number (EIN) or, for sole proprietors, SSN (social security number).
For new businesses, the IRS allows you to apply for your number, and on the space for TIN, write “applied for.” However, you will be subject to backup withholding until you get the number.
Part II requires a date and signature and certifies that all the information included is accurate.
What you just read above applies to hiring in the United States. But if you want to hire globally––and find the best talent in the world––there are different rules to follow. That’s what Panther is here for.
Panther allows you to automate your global payroll process so you don’t have to worry about the nitty-gritty of payroll taxes, IRS forms, and administrative compliance in the United States or abroad. We’ve spent tens of thousands of hours researching and building this stuff and would love to show you how Panther works.
If you’re building a team that hires employees around the world, we can help.