Why You Need W-9s From Vendors
Before paying a vendor $600 or more in a calendar year, your business must collect their W-9 to report payments on Form 1099-NEC or 1099-MISC.
Failing to collect W-9s can result in IRS penalties, backup withholding requirements, and complications during tax season.
When to Request a Vendor W-9
- New vendor onboarding – Request before first payment
- Annual verification – Confirm information is current
- Information changes – When vendor updates their business structure
- Missing records – When preparing 1099s and W-9 is not on file
Vendor W-9 Best Practices
- Request W-9 before issuing first payment
- Store W-9s securely for at least 4 years
- Verify TIN matches IRS records to avoid B-notices
- Track which vendors have submitted and which are pending
- Send reminders for incomplete submissions
Common Vendor W-9 Challenges
Accounts payable teams often struggle with vendors who delay submitting W-9 forms, provide incomplete information, or submit outdated forms.
Digital W-9 collection tools solve these problems by providing guided forms, automatic validation, and submission tracking.
Automate Vendor W-9 Collection
Send W-9 requests to multiple vendors at once and track who has submitted. No more email chains or lost paperwork.
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