When you pay someone, we recommend that you always get a completed W-9 from them. Some vendors or contractors will tell you that you do not need to 1099 them. That may be true, but a W-9 is still a smart idea as it is your responsibility to determine who needs to receive a 1099, and your vendor may not know all the situations and regulations that require issuing them 1099. The IRS recommends collecting and keeping a W-9 on file for four years. This legal document provides you with the contractor’s name, address, taxpayer ID, Social Security number, or EIN. You will need to file the 1099 properly.
The responsibility falls on your business to file 1099 that is filled out correctly and on time by the IRS’s due date.
Penalties for incorrect filings, late or not filing at all, can cost anywhere between $50 to no limitation per return, depending on the circumstances. Before any work is performed, ensure you have a W-9. You do not want the work you just paid to cost you more than expected.
ZümiFi has internal procedures to track new vendors and request W9s. Ideally, we recommend our clients set a policy that any new vendors must submit the completed W9 before they receive their first payment. So get that W9 form, and make your 1099s at year-end a breeze!
We are here to help you stay in compliance!
Get a W-9
Bookkeeping is the bread and butter of our business.
It’s also where we came from, what we love most, and what we’re best at. It does wake us up in the morning and makes us smile when we begin to work! But bookkeeping in the cloud takes all of that joy a few levels higher by optimizing opportunities to automate data entry and connect the vast universe of various online tools that can synchronize seamlessly with your QuickBooks Online. ZümiFi is experienced in understanding each client’s needs, then making custom-designed recommendations that will truly move things forward to deliver great books.