What a W-9 form is and when to use it

Executive overview

Businesses that pay independent contractors need accurate taxpayer information to file a 1099 form at year-end. Without a completed W-9, they cannot generate a valid 1099, risking IRS penalties.

W-9 forms collect the contractor's name, business name, address, and taxpayer identification number (TIN). They apply only to external contractors, not regular employees.

A missing W-9 means a missing 1099 — and potential IRS penalties for both parties.

What a W-9 collects

• Full name and business name
• Mailing address
• Taxpayer identification number — either a Social Security number or an employer identification number (EIN)

When a W-9 is not required

• Regular employees (use a W-2 instead)
• Contractors paid less than $600 annually
• Cash-payment services such as babysitting or lawn care

How W-9 connects to the 1099

• When hiring a contractor, request a W-9 before work begins
• The W-9 data feeds directly into the 1099-NEC filed with the IRS
• 1099 forms are due to the IRS by January 31st each year
• Without a completed W-9, the business cannot file an accurate 1099