Why Is a W-9 Important?
About Form W-9
- When an employer pays annual wages that exceed $600 to an independent contractor, he must typically report the wages to the IRS by filing form 1099. To obtain the information he needs to correctly complete form 1099, the employer will ask the worker to complete form W-9. If the worker doesn't return a completed form, the employer must withhold 28 percent of the worker's wages for income tax.
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