W-8, W-9 and 1099 Series Forms

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In simple terms, US companies must collect a W-8 or W-9 form from every contractor payee and law firm. The W-series forms are for your records only, and not to be filed. Aim to collect these before you pay anyone. Separately, companies must file a Form 1099 for anyone W-9 contractor and law firm paid more than $600 (in aggregate) over the previous calendar year, and give a copy to the payee. There are many 1099 forms and deadlines, but itโ€™s safest to stick to the 31 Jan deadline.

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When is a Form 1099 triggered?

In general, if you have hired a U.S. independent contractor and paid them more than $600 in non-employment income during the tax year. Independent contractors do not include any corporations.

If you paid a law firm (e.g. Inventus Law) or someone who is not an employee, such as a subcontractor, attorney or accountant a total of $600 or more for services provided during the year.

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Requirements

Form W-9

If you have made the determination that the payee is an independent contractor, you can request the payee to fill out the Form W-9 (Request for Taxpayer Identification Number and Certification). This form includes information like the payee's legal name, Taxpayer Identification Number (TIN) or Social Security Number (SSN). The Form W-9 should be shared with the payee and stored with you for four years for future reference in case of any concerns/requests from the payee or the IRS.

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Steps to follow:

  1. Login to your Inkle Dashboard app.inkle.io
  2. Go to Tasks and select the task named โ€œForm 1099, 2022โ€
  3. Start the Task by going through the summary and accepting the pricing
  4. Upload your bank statements so that we can identify your contractors
  5. Collect all the W-9 forms from your contractors and upload them on Inkle Documents

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Know more about:

  1. Form 1099
  2. Form 1099 Guide
  3. Form 1099 Requirement
  4. W8 Form
  5. W9 Form