![]() When the work is done, and the freelancer’s invoice is submitted, that particular company pays him the full $4, 500 without any taxes taken out. ![]() Unlike part-time and full-time employees, independent contractors don’t have taxes withheld for payments of services rendered to their clients.įor instance, a company could hire a freelance designer to build a new website for a fee amounting to $4, 500. The government, however, still requires organizations that use independent contractors to submit a 1099-MISC form to match the contractors’ tax filings with their yearly tax income.īut generally speaking, W9 forms are used by independent contractors or freelancers, and not by full-time employees, to complete their tax forms. As such, it is up to individual contractors or freelancers to meet those IRS tax obligations. You can download a blank W9 form, to get a picture of what we are talking about.īusinesses that seek services from independent contractors or freelancers don’t withhold any income tax, Medicare taxes, or Security taxes, as regular employers do. ![]() A W9 tax form is an IRS tax document in the form of a helpful guide, which helps independent contractors in completing their tax obligations for the calendar year.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |