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Commonly Asked Questions about US Legal Independent Contractor Forms

Payments earned by a contractor who completes a W-9 form arent subject to IRS withholding, meaning its the payees responsibility to report the income and pay the self-employment taxes, which is calculated at a rate of 15.3 percent as of 2022.
Use Form W-9 to provide your correct Taxpayer Identification Number (TIN) to the person who is required to file an information return with the IRS to report, for example: Income paid to you. Real estate transactions. Mortgage interest you paid.
If youre an independent contractor, youll need to fill out a W-9 for each client for whom you invoice $600 or more in the given tax year. A W-9 reflects that youre responsible for your own income taxes and your payer will not be withholding them since youre not an employee. What Is a W-9 Form? How Do I Fill It Out? - Gusto gusto.com resources articles hiring what-is gusto.com resources articles hiring what-is
How to file a 1099 form. There are two copies of Form 1099: Copy A and Copy B. If you hire an independent contractor, you must report what you pay them on Copy A, and submit it to the IRS. You must report the same information on Copy B, and send it to the contractor. What Is a 1099 Form, and How Do I Fill It Out? - Bench Accounting bench.co blog tax-tips 1099-form bench.co blog tax-tips 1099-form
The 1099 form is used to report non-employment income to the Internal Revenue Service (IRS). Businesses are typically required to issue a 1099 form to a taxpayer (other than a corporation) who has received at least $600 or more in non-employment income during the tax year.
A W-9 form is used by independent contractors and freelancers to document identifying information. The 1099 forms are prepared by the business that hires the contractor when they work together and sent to the contractor at the end of the calendar year.
1099-MISC 1099-MISC, independent contractors, and self-employed | Internal Revenue Service. 1099-MISC, independent contractors, and self-employed - IRS irs.gov faqs 1099-misc-independent-con irs.gov faqs 1099-misc-independent-con
Form 1099-NEC Form 1099-NEC Independent Contractors | Internal Revenue Service. Form 1099-NEC Independent Contractors - IRS irs.gov faqs form-1099-nec-independent irs.gov faqs form-1099-nec-independent
A W-9 form provides taxpayer information, is completed by the contractor, and is maintained by the business. A 1099-NEC is completed by the business and provided to the independent contractor as well as the IRS.