As a business owner, it is important to accurately report your income and pay the correct amount of taxes. If you have paid contractors or other vendors a total of $600 or more during the year, you are required to file Form 1099 to report this income to the IRS. Failure to do so can result in penalties and interest charges.

A W-9 is an official term usually titled “Request for Taxpayer Identification and number certifications” This form provides the collector the info needed to fill out the 1099 for the IRS.

Businesses often hire subcontractors to perform specific duties for their business. In doing so there are certain things you should be collecting from these individuals or businesses to help ease the burden of tracking for 1099s, workers compensation insurance audits and even protecting you against legal ramifications.