What is a W 9 Form?
Taxpayer Identification and Certification or W-9 is a form which employees fill out and sign as part of their enrollment process. It provides the HR departments with the information required for tax reporting; for instance, the employee’s name, home address, and social security number.
Significance a W-9 form
Employees, companies, and independent contractors all need to ensure that W-9 documents are completed, filled and updated.
- Significance to employers
As an employer, you ought to have a W-9 form in place for each active employee. It is not mandatory to send W-9 to the Internal Revenue Service (IRS); however, you will need it to successfully complete employee’s 1099 or W2 tax forms each year.
- Significance to Independent contractors
If you’re a part-time employee, freelancer or contractor, you need to fill out a W-9 before you can be lawfully contracted by a company. As a freelancer, you are required to pay taxes on the proceeds you make and file your tax returns with the Internal Revenue Service each year. To do that, you will need a W2 or 1099 form from every organization that you have offered services to. Contractors and freelancers are advised to complete and present W9 tax form to each of these organizations before offering services to them, to ensure that they receive their W2s on time for tax season.
Benefits of having a W-9 form signed online
E- Signatures software provide various benefits in regards to getting documents filled out and signed within a paperless environment. Successfully being able to sign a W-9 anywhere, anytime with a computer, tablet, or smartphone is much faster and less tiresome when compared to scanning, faxing, mailing, or manually delivering it. When deadlines are looming, and you need an employee to immediately sign a W-9 form, there is no faster, flexible, and secure method than with an e signature. The efficiency brought about by signing new hire documents like W-9 online improves your recruiting workflows and delights your soon-to-be employees.
By engaging the services of a leading e-signature solution provider like eSign Genie you (or your HR department) can generate re-usable templates for onboarding documents (such as employee handbooks, W-4, W-9s, and more). More so, having these documents esigned instantly during the recruiting process is a plus for any organization.
You can request the template to be added to your account – Click here