Reading the small-print form W-9 instructions written by the IRS can be painful, but it doesn’t have to be. The following questions and answers will give you the critical information to ensure that your business is in compliance with all of the W-9 requirements.

Form W-9 FAQ

  • Do I need a W-9?
Any person or company paying an independent contractor $600 or more needs to get a W-9 completed by the contractor. Additionally, a W-9 tax form is used any time you need to obtain a U.S. person’s taxpayer identification number (TIN) for financial transactions (U.S. person is defined as [1] an individual U.S. citizen or resident alien, [2] a company or association created or organized in the United States, [3] an estate, or [4] a domestic trust). Some examples of these financial transactions include real estate transactions, cancellations of debt, and income paid.

  • What information do I need from the contractor?
When completing the Form W-9, your contractor must provide a full name, address, and taxpayer identification number (Either a Social Security number or Employer Identification number). The contractor must also sign and date the form.

  • When should I send the W-9 form to the contractor?
The most responsible practice is always to send out and collect the form before the payment is made. It will be much more difficult to collect the W-9 forms at the end of the year, after your vendors or contractors have already received payment. (They don’t have any motivation to be responsive to your request at that point.)

  • What is the fastest and easiest way to get the W-9 form signed?
The best way to get this (or any) document to your signer is to use RightSignature's easy online document signing. With just a few clicks, you send the form for signature. Then a link to the W-9 form will be in the contractor’s email inbox, and the recipient can fill it out in any web browser, sign online (using one of RightSignature’s many electronic signing options), and return it to you immediately.

  • Where do I find the updated W-9 pdf?
If you use RightSignature to send the W-9 request online, you’ll find the updated W-9 pdf form preloaded in your free account under Public Templates. If you need to print out the W-9 pdf, you can find the W-9 download on the IRS website here.

  • What do I do with my completed W-9 form?
Keep it! The information on the form (Including the names of both the payer and the recipient, the identification numbers of both parties, and the amount paid to the recipient) will be used to fill out 1099 forms for your independent contractors at the end of the year, but you do not need to send the actual W-9 form to the IRS. 1099 forms need to be generated when a company pays an independent contractor or vendor $600 or more, and must be issued to the independent party by January 31st of the year following payment. A copy of the 1099 form must also be submitted to the IRS by February 28th, if filing paper documents, or March 31st, if filing electronically.