Is true about a W9 form?
I worked for a company for 25hrs (at $10/hr), don't expect to work for them anymore. But I was asked to fill a W9 form, and would like to know what I'm in for. This is what the "recruiter" said: "Also a W9 form is attached. If not familiar with this form it is a tax form that states simply that if you make more than $600.00 working for any one company in a calendar year then you must file a W-9 form with the IRS and claim this income at the end of the year. We will not take taxes out of your check but will file the W-9 form if you go over this amount. Please send it back to me with your first time sheet."
Public Comments
- What the recruiter said is true. You're responsible for all income but employers have to submit a 1099 or w-2 if you earn more than $600. A W-9 is a lot like a W-4, but is for a 1099 (for independent contractors, etc.)
- You gave the recruiter your social security number and the company you worked for is required to furnish you and the IRS a 1099-MISC reporting income that is more than $600. Since you only earned $250, the company is not required to issue a 1099-MISC, but some companies do anyway just to make sure they are allowed to deduct all expenses for labor. When you filled out the W9 you are stating that your social security number is correct.
- They are saying that they are treating you as an independent contractor, not as an employee. But if you are filling out a timesheet, you are most likely really an employee rather than a contractor. You can file a form SS8 and ask the IRS for a determination on which you are - if they say you are an employee it will save you some money in taxes.
- If you file you can add this amount in it won't really make a huge difference because you will not have to pay social security, unless you have other 1099's.
- A W9 form is a request for your tax id number (or SSN) by someone who is intending to pay you money for services rendered. This should result in a 1099 being given to you if you performed services for more than $600 by the end of the year.
