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The information is used to fill out Form 1099 and is used for independent contractors, freelancers, or unrelated vendors, but not employees. A Form W-9 must be completed by one party and furnished to a second party if the second party is going to furnish specific types of payments in the future. Most broadly, Form W-9 must be filled out by independent contractors that perform work for another party with which they are not employed. This includes freelance workers or gig employees under non-employment structures. The Limited liability company box is for a Partnership or LLC business with multiple members.<\/p>\n

The backup withholding rate is 24% for reportable payments. If you’re an employee, your employer will withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on your wages. Instead of filling out a Form W-9, new hires are often asked to fill out a W-4 to provide their taxpayer information to their employer. The Department of the Treasury and the Internal Revenue Service issued final regulations amending the rules for filing returns and other documents electronically (e-file). These regulations affect filers of many types of returns including information returns (for example, Forms 1099) and withholding tax returns (for example, Forms 945 and 1042).<\/p>\n

Should I Enter My EIN or SSN on Form W-9?<\/h2>\n

These are the options for which box you should check on line 3. Depending on your circumstance, select the most appropriate federal tax classification on line 3 for the name entered on line 1. Return your completed Form W-9 to the business fedex w9<\/a> that asked you to fill it out. Ideally, you’ll deliver it in person to limit your exposure to identity theft, but this method often isn’t practical. In this optional step, you can provide the requester’s name and address.<\/p>\n