Working as an independent contractor gives you freedom to choose the project you’d like to work on and plan your schedule. But when it comes to filing taxes things may get complicated. Let’s clarify some crucial aspects regarding the form W-9.
Unlike other tax documentation free fillable W 9 form may not be sent out regularly. Actually it is updated every time the information on the form changes or the person contracts with a new company. Suppose you’re a consultant who is hired by the companies to advise them how to cut expenses. Every new business you will be consulting will ask you to provide your TIN on the Form W9.
When a company hires an individual as a non-employee it must send him a request to complete form W9 printable or electronic. A business must get the form before it pays more than $600 during the calendar year. Generally, a freelancer must send new form if any changes occur. Though it’s not obligatory, a company may ask for an updated W-9.
Any company that pays you dividends, interests or any kind of the reportable income must ask you for the contact information, TIN and name. However, you must be sure that the company that requests such sensitive data is not a scam. To avoid your sensitive information disclosure, ask a company why it needs such data and how it is going to use it.
Remember that employees, no matter whether they are independent contractors or a company’s staff can rely on the law to protect the information they give the employers. In case of any information breaches, employers may get punished.