Form W-9 is used to confirm a new employee or contractor's taxpayer identification number. This form asks for the employee or freelancers name, business name (if applicable), business structure, and tax identification number or Social Security Number. This form also asks if the individual submitting is exempt form backup withholdings. In general, most taxpayers are, but if not the company hiring will need to withhold income tax from their salary at a rate of 28% in order to send to the IRS.
Once the recipient has completed and e-signed Form W-9, you, the payer, will receive notification and the status of the form on your ExpressTaxFilings Account will change to “Signed.” You can review and accept each W-9 received. Once you have accepted the completed W-9, you can then click “Update to Address Book” to automatically add recipient details to your address book. You can also download the form to save it for your business records.