Form 1099 FAQ
It’s that time of the year again when you as a practice owner need to start thinking about 1099s. We have created this FAQ for all things 1099. The process starts with a Form W-9. We will create and file your 1099s but we do need your help collecting information found on Form W-9. Please note 1099s are only for payments made via cash, check, and EFT payments. Therefore, we encourage you to make all payments via credit or debit card.
What exactly is Tax Form W-9 and what are they used for?According to the Internal Revenue Service (IRS), if your company uses people for contract work (such as freelancers or subcontractors), you will need to require them to fill out a W-9 Form. This is completed so their taxpayer information is on file (in the event you will need to fill out a 1099 Form (for reporting of payment for services provided by non-employees). You should request a W-9 form for anyone doing contract work for your company. Best practice is to require a completed form in exchange for their payment from you vs. waiting until the end of the year when they could be harder to track down.
Who needs to use Tax Form W-9?This form is for:
- Independent Contractors
- Anyone who works for themselves