W-9's

LadyFinisher

I thought our contracts make it clear that we are contractors (ie. not employees) but I was just asked to fill out a w-9 form for a GC. I have no real objection to filling it out except I don't know whether to check the "exempt payee" box. Has anyone else been asked to fill these out? Are these like a W-2 for businesses?

Thanks

Durabond-Don

1. If the broker does not have your SSN, then will not issue any payment.
2. If broker has SSN, and you do not complete W9, then will hold income tax (back up taxes) from the payments to you.


Form W-9, "exempt payee" is someone who is up to date on their taxes and not subject to backup withholding. You would also check 'exempt payee' unless you know that you are already in trouble with the IRS with under paid taxes.

This might help you a little here:

http://www.cafemom.com/answers/17494...mpt_payee_mean

LadyFinisher

Thanks Don for answering. I don't have any unpaid taxes and have an EIN number so I will just check the box. I talked to a woman at the IRS when I got the number and got everything set up last year. I have to pay my business taxes like I do my personal income taxes. So that is why I was a bit confused.

Durabond-Don

Your welcome.

But do me a favor. Make sure the info I provided is correct before you check that box. I would hate to steer you in the wrong direction.

Ask a good tax expert or call the IRS and ask, to be sure. I been breathing drywall dust for 28 years, I might be off.

silverstilts

Form W-9 is always requested from general contractors , they need this information so at the end of the year they have your tax ID number to send out 1099's .... Its just a formality and no they do not withhold tax money unless the irs requests if for back taxes.... no tax id no check simple as that ,, I request it for my subs along with all there insurance certificates... It helps weed out some of the hacks and fly by nights working and not paying their share...

LadyFinisher

Thank you, Silver that makes alot more sense I thought it was like that but just wanted to make sure. Thanks to you Don as well.

silverstilts

Yes check the exempt box.... if you are self employed and own your own business you are responsible for your own taxes not the GC... although a few things have changed this year in MN . but most of us are legit and exempt..

joepro0000

what if you sent w9's to the gc's and never got any 1099's? That happened to me last year from 10 different gc's. Did not get any 1099s

A+ Texture LLC

Just make sure you report it. If you don't and they send in the forms with their taxes, irs will come after you.

Darren@Partners

I believe we are no longer required to be sent 1099s or to send 1099s, particularly if recipient is incorporated. W-2s must be sent out on or by Jan. 31st.

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rockdaddy

instead of your ssn use your EIN so uncle knows who to collect his money from. Standard practice everywhere.