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The New Vendor Set-Up Request Form is a document used by organizations to collect necessary information to establish a new vendor in their system.
A W-9 is required for all new vendors. The College is required to report certain payments to the IRS. This IRS form gathers all the pertinent information we need in order to comply with IRS regulations.
In general, businesses are required to obtain a W-9 form from any service vendor they pay $600 or more to in a calendar year. This includes independent contractors, freelancers, and other vendors who provide services to the business.
Businesses should request a W9 from all vendors. Certain vendors will be exempt from backup withholding and still need to fill out Form W-9 to enter an exempt payee code and make certain certifications. Some vendors will fill out a form like one of the Form W-8 or similar forms for foreign persons.
Who does not get a 1099-NEC form? Independent contractors or vendors, including LLCs and partnerships operating as S or C corporations, do not receive a 1099-NEC or 1099-MISC form. Only unincorporated independent contractors receive these forms.
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The main differences between W-9 and 1099 tax forms are that a W-9 is filled out by the supplier or independent contractor to provide their tax and payment information to the payer, whereas 1099 forms are provided by the payer to document the supplier or contractors gross earnings and any backup withholding after
The required forms are: 1. A properly completed vendor form (business name, address, phone number, tax id etc.), and 2. A properly completed tax form based on the vendors type of entity: o W-9: For individuals or companies in the United States, o W8-BEN*: For foreign individuals, or o W8-BEN-E*: For foreign companies.
If you fail to present a completed W9, the payer is required by the IRS to withhold 24% of the payments you generated. This backup withholding serves as a precaution in collecting taxes. Many payers require a completed W9 form before processing payments. It could also result in payment delays.

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