Identifying employees with the W9 Form
We are taking a step back from pdfFiller‘s tax season review to discuss the W9 form 2023 which isn’t actually seasonal, but is essential to the tax filing of every business! The latest revision of IRS form W 9 that is valid for filing in 2023 actually dates back to 2018. All of the previous form W 9 versions are available at pdfFiller.com.
Take note: As of 2023, Public Law 115-97 changed the backup withholding rate from 28% to 24% for reportable payments.
- What is a W-9 form?
- Who needs form W-9?
- What other forms accompany form W-9?
- How do I fill out form W-9 in 2021?
- When is form W-9 due?
- Where do I send form W-9?
What is a W-9 form?
IRS Form W-9 (Request for Taxpayer Identification Number and Certification) is a tax form used by employers to identify their employees. Every taxpayer has an identification number. In order for employers to properly withhold taxes from an employee’s pay, they need the employee’s identification number. Form W-9 provides an employer with that identification number.
Who needs form W-9?
Businesses with employees need the W9 form to properly file their taxes. In some special cases, such as if you are an independent contractor, your client may request a W-9 from you so they can accurately prepare the 1099-NEC form and report how much they paid you at the end of the year.
What other forms accompany form W-9?
Form W-9 is usually accompanied by form W-4. The W9 form provides the employer with all of the required identification information. The W-4 helps them to calculate how much to withhold.
How do I fill out form W-9 in 2023?
Form W 9 is very straightforward. You will simply enter your name, business name (if applicable), your tax classification, full address, and social security number. If you are a business, you will fill out your employer identification number (EIN) instead of your social security number. If you are a resident alien and do not have a social security number, you will enter your individual taxpayer identification number (ITIN) instead of a social security number. Resident aliens must apply for an ITIN on Form W-7 (Application for IRS Individual Taxpayer Identification Number).
Follow the step-by-step instructions below to complete a fillable W-9 form 2023:
- Start filling out your W-9 by entering your full name.
- Enter your business name or “disregarded entity” name, if different from the name you entered above.
- Specify your business entity type according to the federal tax classification.
- If you’re exempt from backup withholding, enter the exemption code that applies to you. Generally, individuals, including sole proprietors, are not exempt from backup withholding.
- Indicate your business address, or home address if you don’t have one. The only requirement here is that your address should match the one you will use on your tax return later.
- In the next part, provide your business’s tax identification number. This may be either your individual Social Security Number (if you’re a sole proprietorship) or your employer identification number (EIN) (if you’re another type of business).
- Once all the fields are completed and checked off, sign and date your W-9 directly in the pdfFiller editor.
For more on filling out the W9 form, check out the following video:
When is form W-9 due?
Form W-9 does not have a due date. It is typically provided to employees upon their hiring date and then kept on file. Despite having no strict deadline for filing a W-9, employees should fill it out as soon as they receive one. In the event an employer fails to send someone a W-9 or sends the form containing the wrong information, they may be subject to a $50 penalty.
If you’re the accountant/person responsible for collecting the filled out W-9s, make sure to send in the forms well before the 1099-MISC form due date. The deadline for form 1099-MISC is January 31, and most other 1099s are due around the same time.
To ensure timely submission of forms to the IRS, some businesses get their employees and contractors to fill out a W-9 ahead of time, while others collect a W-9 before issuing any payments at all, to encourage their employees or contractors to file in advance.
Where do I send form W-9?
Forms should simply be kept on file for the IRS to review if necessary. They are mostly used by businesses for reference purposes to file taxes at the end of the tax year. It is not necessary to send a form W-9 anywhere.
Now that you’ve got the basics down, try using pdfFiller‘s template creation tool to create a form W-9 template for your business and save yourself loads of time and typing! Also, be sure to check out our W9 app in the app store.
Originally published January 2016, updated January 25, 2023.