I’m opening a new company and want to know more about the W9.
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These workers need to have control over how, when and where they perform the assigned work; have the right to work with other clients in addition to you; and the work must be ‘outside’ the business’ nature of work. An example could be an IT person who keeps your website running for your small retail store or a blogger who writes your monthly newsletter. There are significant penalties for mis-categorizing employees, so please be sure you have crossed all your ‘t’s and dotted all your i’s.”
Here’s some help to make sure you have:
When you initially hire your I/C you’ll need them to complete the W9 for payment information. From there, keep a running total of the amount they’ve earned throughout the year. When you file your payroll taxes, you’ll use the amount earned through the tax period (annually or quarterly, depending on the size of your business) to complete IRS Form 1099. Send a copy of the 1099 to the I/C and one to the IRS and you’re all done.
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