Who Should Fill Out a W-9 Form

Labor Day has just passed, and summer is drawing to its close.  Soon enough the end of the year will be here and you’ll be on the mad dash to get your taxes filed correctly and on time.

One thing you want to have a handle on now, is W-9 forms.  These are the forms that you are legally required to have vendors and contractors fill out.  Once filled out, they are uploaded to your system; saving you a lot of time and stress when it’s time to file 1099s.

Something I’ve learned (yes, the hard way) is without those W-9s it’s not going to be easy to file the 1099s.  You’ll be spending a lot of time chasing down businesses and individuals to get the information you need.

One way to avoid the hassle come January, is to issue a W-9 form to every vendor and contractor as they begin working with you.  As you bring on new business entities, make the W-9 a routine part of your contract/business agreement package.  You want to have that form back before the first purchase order for products or services is sent.

Having this form taken care of upfront allows you, or your bookkeeper, to upload the information immediately.  Then, if your books are automated with a system like Intuit QuickBooks, just click the associated link at the end of the year and the 1099s are filed.

If your not sure who should fill out a W-9 form, use this golden rule:  If you don’t take care of their taxes, benefits, or unemployment insurance (FUTA), they should be filling out the form.

Here’s a list with a little more detail about who fills out a W-9:

• Independent contractors and Freelancers

• Sole proprietors and single member LLCs

• Partnerships & LLCs taxed as partnerships or sole proprietors

• Lawyers and law firms

• accountants/bookkeepers

The good news is, once you have their W-9 Form, they do not need to fill out another one unless their information changes.  That information includes:  Legal name or business name, Taxpayer Identification Number (TIN) or Employer Identification Number (EIN), Business structure or entity classification, contact or mailing information.

So, if they provide a service to your business, but don’t work for you directly, they are required to fill out and return a W-9 form to you.  Make it part of your service-hiring paperwork.  Once you have a W-9, immediately upload the information to your system so 1099s are easy to file.  You won’t be stressed, and your bookkeeper and tax accountant will be grateful.