Hiring Contractors? Get the W-9 Upfront!
Churches that hire contractors have a requirement to obtain their Tax ID Number on form W-9 if they will have to issue a 1099-MISC to them. However, Churches may not know at the beginning of the year if they will pay more than $600 and need to send the 1099-MISC. By the time the Church realizes they will need the W-9 form, it may be difficult to track down the contractor or get the information from them.
It is much, much easier to request a W-9 form upfront for all contractors or non-corporation vendors before they start working, rather than having to try to track down the numbers later.
If you cannot obtain or verify the contractor’s identification number or they refuse to provide it, that’s ok. You can still work with them. However, you will need to start back-up withholding immediately at 24% tax for all future payments. This is another good reason to get the W-9 form upfront.
Do you need to file 1099 forms? Clergy Financial Resources is here to simplify the process of W2 & 1099 reporting. Start filing 1099 and W-2 forms today!
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Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.
This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.
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