Compliance

What Is W9 Tax Form & Who Needs It?

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July 28, 2020
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What is W-9 Form?

W-9 Form or Request for Taxpayer Identification Number and Certification is used by US businesses to get information from independent contractors (or freelancers) they hire who are based in the US. When a business pays a contractor $600 or more during a tax year, these payments need to be reported to the IRS, using an information return called Form 1099-MISC.

W-9 Form contains the name, address, and Social Security number or tax identification number of a contractor. This form is not submitted to the IRS by either party.

Although businesses working with independent contractors do not withhold income tax or provide benefits (as they would for their regular employees), the IRS still wants to know how much the contractors received to ensure they pay the taxes. It uses form 1099-MISC to gather this information.

If a US business is hiring an independent contractor outside of the US, they need to collect W-8BEN or W-8BEN-E Form.

How to collect W-9 Form on Deel?

Deel offers a built-in process for collecting information and automatic generation of W9 Form. You can learn more about how Deel's Tax Feature works in this article. Also, here is how to fill in a W9 form on Deel.

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