The W-9 form is required when the external employee has been paid over $600. The benefit of this document presentation for the independent contractor is that he maintains his good tax bearer reputation and is allowed to deduct some personal and business expenses.
Be ready to provide the document on demand. You should download a blank copy from the IRS website. It is updated periodically, so you have to fill the latest version. If a customer gets an old variant, you will need to send a new W-9 again. The following details are normally included:
|Name||Entity name||Contact information||Business contact information||Social security number||EIN|
The company has to get this form for the IRS report. If you have any questions, feel free to ask your client.
Digital forms are more convenient as you can use them several times. It is not necessary to print them out as they may be sent electronically if requested.
Lots of freelance employees are wondering, ‘When do I fill W-9 form 2020?’ Such documents have to be mailed for the current year. It should be taken into account that some employers hold payments until the contractor submits the completed paperwork. There may also be some penalties if it is not submitted in time.