Author Topic: w-9 forms for job site work  (Read 2496 times)

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Offline Shadytree

  • Posts: 24
w-9 forms for job site work
« on: January 17, 2018, 08:47 AM »
I fabricated & installed some acoustic panels for a sound studio & now they want me to fill out an w-9. I've been around for a while and have never had this request. Any advice? Thanks!

Offline Sparktrician

  • Posts: 3630
Re: w-9 forms for job site work
« Reply #1 on: January 17, 2018, 09:12 AM »
Form W-9 is just a form that captures your taxpayer info for your employer.  It's largely standard wherever you go.  You might do well to read up on it.
- Willy -

 "Remember, a chip on the shoulder is a sure sign of wood higher up." - Brigham Young

Offline Peter Halle

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Re: w-9 forms for job site work
« Reply #2 on: January 17, 2018, 09:17 AM »
You can get the form online and fill it out at this link directly from the IRS.  Yes, if your billing was above a certain level it is required.  Some companies will require it from every contractor.  You are supposed to report all your income.

DO NOT FILL OUT W-9 forms from other sites because of the risk that they can mine or steal your data.

(The IRS form doesn't allow you to fill in the SSN part correctly in reference to the boxes on the form.  You might want to fill out without typing in that area, print, and then hand write.)  Alternately you can print the form and complete via pen.

LINK:  https://www.irs.gov/pub/irs-pdf/fw9.pdf

Peter

Offline Shadytree

  • Posts: 24
Re: w-9 forms for job site work
« Reply #3 on: January 17, 2018, 09:22 AM »
I have been in business for 10 years & do report my income of course. I've done commercial work quite a bit previously & never had this request. I was just asking for an explanation of what this request is about. I did research w-9 and it is primarily for sub contactor work.

Offline JimH2

  • Posts: 608
Re: w-9 forms for job site work
« Reply #4 on: January 17, 2018, 10:28 AM »
I have had several clients request W-9's this year. I am an LLC and rarely work for the same person twice within a tax year. I am always paid by check with the check made out to my LLC so there is no need for this other than asking for asking's sake. I see the day coming when a homeowner will ask for a W-9 when a company replaces their roof, changes a toilet, installs cabinets, etc. It is complete madness and yes they do not need my Tax ID for any purpose and it only puts me (my LLC) at risk. Much like an SSN I don't give out my EIN.

Offline Peter Halle

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Re: w-9 forms for job site work
« Reply #5 on: January 17, 2018, 10:48 AM »
@JimH2, the requirement for asking for W-9 and sending out 1099 are not uniform across all forms of LLC.  There are LLC that are classified as single member (sole proprietor), partnerships, and then even corporations.  Corporation types don't NEED to be sent 1099 but there is no harm in doing so and some companies just choose to streamline one aspect of their operations and send them to all. 

I have received a 1099 for $6.57 before although the threshold limit is $600.

Peter

Offline JimH2

  • Posts: 608
Re: w-9 forms for job site work
« Reply #6 on: January 17, 2018, 11:04 AM »
@JimH2, the requirement for asking for W-9 and sending out 1099 are not uniform across all forms of LLC.  There are LLC that are classified as single member (sole proprietor), partnerships, and then even corporations.  Corporation types don't NEED to be sent 1099 but there is no harm in doing so and some companies just choose to streamline one aspect of their operations and send them to all. 

I have received a 1099 for $6.57 before although the threshold limit is $600.

Peter

What I don't like is the fact that I am doing a one-off job much like a plumber. My wife has a retail store and when I have never even thought to issue a W-9 when repairs or improvements are made no matter the cost. The reality is there is absolutely no reason to do so.  Some of it is due to not pushing back which I have done and succeeded on the principal I am not giving up my EIN for something that cannot be justified. I can see it being necessary if someone were to be engaged in a long-term relationship fulfilling roles that are part of their core business. This is done typically to make it clear that a person is not an employee of that company though it really does not mean anything until the IRS guidelines for assuring someone is truly independent. As an example, an electrician replacing the lighting fixtures in the building with LED fixtures in a CPA's office is an independent contractor and is only to receive payment for services rendered. The electrician supplies their own tools and supplies, sets their working hours, is not supervised by the client, pays for their own training, maintains their own license, provides their own benefits, is not reimbursed for expenses, the work is temporary in nature and not the core work of the company for whom it is performed.

Offline cgraham

  • Posts: 58
Re: w-9 forms for job site work
« Reply #7 on: January 17, 2018, 11:05 AM »
I am a general contractor and no one is allowed on my jobsite without having first filled out a w-9 and a certificate of insurance. Been like that for at least five years. Our accountant cracked down on it about the time the affordable healthcare act started. Not sure if that was the reason but I know it was around that time. As a gc I have to send a 1099 to anyone that is not incorporated

Offline rst

  • Posts: 1965
Re: w-9 forms for job site work
« Reply #8 on: January 17, 2018, 11:17 AM »
We primarily do commercial/industrial work and have to furnish an EIN#, W-9, and carry $5 million liability for the vast majority of our customers.

Offline bnaboatbuilder

  • Posts: 130
Re: w-9 forms for job site work
« Reply #9 on: January 17, 2018, 11:23 AM »
Sounds as if a few people do need to read up on general tax info in the U.S.

Any person or company doing work as a contractor (which the IRS deems to be any person/any business doing any work of any kind for another business) doing more than $600 in a calendar year should receive a 1099-MISC from the client business. A W-9 is the basic information form that any contractor provides to the client business for which they are performing contracted work. A Federal EIN is not secretive information; a SSN is private unless provided to the client business. Many FEIN are available online.

Generally the end of January is when all completed 1099-MISC forms are provided to contractors. End of February is when the client businesses then send a 1096 to the IRS showing what forms they have distributed to contract workers.

These are just the basics. When it comes to homeowners and such, consult a tax pro. Wealthier homeowners might want W-9 info to supply 1099 forms for their own taxes, perhaps a residence is under a corporate entity, etc. So many possibilities.
- John

Offline Mike DeHart

  • Posts: 7
Re: w-9 forms for job site work
« Reply #10 on: January 17, 2018, 01:09 PM »
We had a contractor who refused to fill out a w9.  Man did he   up a storm when he learned about backup withholding when he got his check -28%
%.  irs info   
« Last Edit: January 17, 2018, 06:48 PM by Mike DeHart »
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Offline tjbnwi

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Re: w-9 forms for job site work
« Reply #11 on: January 17, 2018, 08:55 PM »
W-9, COI(s), presented then you get your first check. After the first, keep the COI's up to date and you get paid right away.

Tom

Offline Naildrivingman

  • Posts: 483
Re: w-9 forms for job site work
« Reply #12 on: January 20, 2018, 08:26 AM »
Back to the original post, I was asked to give a W-9 to a management company that represented a 30 unit condo for repairs that affected the entire building. I don’t know the entire law and I don’t need to. I have an accountant and attorney. A quick email to them with a question as to legitimacy and both answered yes, so I gave one over.  I was the general contractor for the project and I contracted with subcontractors to fulfill parts of the work, but theoretically I was a subcontractor to the management company.

In my case, the management company paid me from funds they managed on behalf of the HOA.  I’m going to guess that the more layers there are to the relationship, the more likely will be this request for a W-9.  To my knowledge, anyone paying anyone any amount can request a W-9 and issue a 1099-Misc. I have never received one that was under the threshold allowed by the IRS.
Dance with who brung ya...

Offline Rob Z

  • Posts: 707
Re: w-9 forms for job site work
« Reply #13 on: January 23, 2018, 08:34 PM »
I used to fill these out all the time and never worried about it because my SSN wasn't used for the business.  After I closed things down I went to work for a mechanical contractor for about a year and  a half, and one of my jobs was to fill out all paperwork for our general  contractors. Sometimes I would fill out 5-10 of these in a week.  One time near tax season I asked the book keeper "How many 1099's do we actually end up getting?" She told me we never received more than a handful.  On the other hand, I think I got one years ago for about $100  [blink]