I went to do a bid on a commercial title loan company. They accepted my bid but said I had to fill out a W9 form. I have never had anyone ask me to do this. Is this normal? Or does the business not know what they are talking about. Thanks.
do it all the time. how big is the job money wise?
It was only a few windows. $25 per cleaning, inside and outside. Once a month. Dont you only fill out a W9 if you are an employee?
w2 for employee w9 for non employee vendors… common practice…
so they want to write off $300 kind of a small amount for a w9 but no big deal
OK. I just read a little more about it. It stated not necessary if you make less than $600.00 per year. In this case it is only $25.00 per month. I dont have a problem filling it out, just have not had anyone ask. Thanks.
Yep - pretty common. If you ever do work for a national company you’ll have to fill one out. (Just for the record: if 5 national cleaning/maintenance companies contact you about doing work for them, pass on 4 of them.)
I have one account that 1099 me every year .
Its only $600 no big deal.
They can only submit it after you exceed $600.00 income from them
If your a corp you dont need one.
Welcome to the world under Obama. This is done so the IRS can make sure that you pay taxes on that $25 a month they are giving you.
I have probably 12 accounts that 1099 me each year. It’s no big deal, as you found any thing $600 it more has to have one.
I have had a few co that wanted one despite the low amount, well under that amount but no big deal. I usually keep copies of the form and leave one with a new commercial client and save a step.
Haha! I believe paying taxes on your income precedes the current administration. I am pretty sure giving service companies W-9s does as well.
Learn the facts. The law was changed under the OBAMA administration. And Michael, if you’re not complying with the law by getting w-9’s from your vendors or withholding 28% tax from payments to them, you could be subject to hefty fines. OBAMA 2012…?
On April 15, 2011, President Obama signed into law the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011 (HR 4; 1099 Act). This new law may have a direct impact on you and your business. There are significant fines for failure to file properly completed forms, so please be sure to follow the guidelines outlined herein. The information contained in this letter, as well as more detailed information on HR 4, can be found at Internal Revenue Service.
"1099MISC forms are required to be submitted annually to each non-incorporated and for profit businesses that you have paid during the year for business related services, attorney fees, rents, prizes and awards, other income payments and medical and health care payments in excess of $600. The 1099MISC form is also required to be sent to the IRS.
An IRS form W-9 should be submitted to and returned back to you by these same businesses/vendors before any payments are released. The payee is required to withhold 28% from the vendor payments if a signed and correctly completed W-9 is not received. The amount withheld must then be remitted to the IRS on form 945. The W-9 will determine if you need to file a 1099MISC to these vendors.[/I]"
Doesn’t that go back to the $600 and above comment already posted? Technically, if you know you will be paying a vendor under $600 you don’t need one… right?
Hey David what 4 to pass on and whats the 1 to keep?
As I understand it, you need a w-9 from every vendor you pay more than $600 to in a year. the W-9 is a form which identifies which type of business entity you’re dealing with to determine if you need to file a form 1099 for that vendor at the end of the year.
Even if you don’t receive a 1099 or w9 or whatever forms you’re still required to pay tax on any income right. Sadly lots of people try to beat the system so the irs needs a paper trail
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Weve all done them, no biggie…
Exactly. This is the point I was trying to make before Steve copy/pasted half a page from the IRS website here.