As a contractor, you will be required to fill out a W9 form for any company or individual who pays you more than $600 in a calendar year. Filling out a W9 might seem daunting at first, but it`s actually a straightforward process. Here`s how to do it:
1. Enter your name in the “name” field. This should be the name that you use for tax purposes.
2. Enter your business name, if you have one. If you`re a sole proprietor, you can use your own name.
3. Enter your address. This should be your mailing address.
4. Enter your taxpayer identification number (TIN). This can be your Social Security number or an employer identification number (EIN) if you have one. If you don`t have either of these numbers, you`ll need to apply for an EIN with the IRS.
5. Check the appropriate box to indicate your tax classification. This will be either “individual/sole proprietor,” “C corporation,” “S corporation,” “partnership,” “trust/estate,” or “limited liability company.”
6. If you`re filling out the W9 on behalf of a business, you`ll need to provide the business`s name and TIN in the appropriate fields.
7. If you`re exempt from backup withholding, check the box indicating so. Backup withholding is a percentage of your payment that`s withheld for tax purposes.
8. Sign and date the form.
Once you`ve filled out your W9, you`ll need to provide it to any company or individual who pays you more than $600 in a calendar year. It`s important to keep a copy of the form for your records.
In conclusion, filling out a W9 form as a contractor is a simple process. As long as you have your TIN and tax classification information ready, you should be able to complete the form in just a few minutes. Just remember to keep a copy of the form for your records, and provide it to any company or individual who pays you more than $600 in a calendar year.