Collecting W-9 forms may not be top of mind when you hire a new vendor, but getting those as soon as possible is the best way to make sure you don’t get stuck tracking them down at the end of the year as the tax deadline nears.
As you know, business owners must issue Forms 1099 to vendors or independent contractors who have been paid at least $600 during the calendar year. This includes vendors or individuals who perform certain services, such as construction contractors, landscapers, attorneys, accountants, or other professional service providers.
We suggest that when conducting business with a new vendor or bringing on a new contractor that you ask that person to complete a Form W-9 before you issue payment to that vendor. It will be easier to collect the W-9 immediately rather than several months later when it may be more difficult to find the person.
The information on the W-9, including the vendor’s address and taxpayer identification number, will be needed to issue the 1099. If you are unable to get this information, you will be required to withhold taxes on the amount paid to the vendor throughout the year.
Antares Group can assist you in setting up vendors and retaining their Forms W-9 for year-end tax filing. Please contact our office to learn more about this service. Please note that if you receive updated W-9s throughout the year, you must retain those for your records or forward them to our office if we perform this service for you.
Michelle Beazley is a Back Office Specialist with Antares Group. She can be reached at email@example.com. Karen Doughty is a Back Office Senior with Antares Group. She can be reached at firstname.lastname@example.org.