Why This Matters
If you hire independent contractors or vendors for your business, you’re responsible for issuing 1099-NEC forms at year-end if you’ve paid them $600 or more. To do this correctly, you first need to collect a W-9 form from each contractor.
Form W-9 provides you with their legal name, business name (if any), address, and taxpayer identification number (TIN). Without a completed W-9, you can’t properly file their 1099—and you could face IRS penalties.
Note: Payments made via credit card, PayPal, Stripe, etc. are not reported by you—the processor reports them on Form 1099-K. (Zelle and personal Venmo do not count as third party processors). Still, it’s best practice to collect W-9s from all vendors for clean recordkeeping and to prevent year-end surprises if payment thresholds are met.
Download the official IRS Form W-9
Who Needs a W-9?
You should request a W-9 from anyone who is:
- An independent contractor you pay $600 or more during the year.
- A freelancer or consultant working with your business.
- An unincorporated business or sole proprietor you pay for services.
- A landlord you pay $600 or more in rent (reported on Form 1099-MISC)
Note: Collecting a W-9 doesn’t mean a 1099 will be issued. IT simply gives us the information we need to determine if one is required.
Ways to Collect W-9s
- Preferred Option – Keep Smart Books Handles It
- Share your contractor/vendor email list with us and we will securely request and collect W-9s from your contractors and vendors.
- Alternative Option – You Handle It
- Reach out to your contractors/vendors directly using one of our templates below, and ask them to complete Form W-9 and upload it securely to our ShareFile Portal.
Email Templates for Requesting a W-9