Quick Comparison
| Aspect | W-9 | 1099 |
|---|---|---|
| Purpose | Collect taxpayer info | Report payments to IRS |
| Who fills it out | Contractor/vendor | Paying business |
| When submitted | Before payment | After year-end |
| Sent to IRS | No | Yes |
What is a W-9?
Form W-9 is a request for taxpayer information. It's filled out by contractors and vendors and given to the businesses that pay them.
The W-9 collects the payee's name, address, and Tax Identification Number (TIN). This information is used to prepare 1099 forms at year-end.
What is a 1099?
Form 1099 is an information return filed with the IRS to report various types of income. The most common for contractors is Form 1099-NEC (Nonemployee Compensation).
Businesses must send 1099-NEC forms to contractors who received $600 or more during the tax year, and file copies with the IRS.
How They Work Together
- Start of relationship: Business requests W-9 from contractor
- Throughout year: Business tracks payments to contractor
- January: Business prepares 1099 using W-9 information
- January 31: 1099 sent to contractor and filed with IRS
Simplify Your W-9 to 1099 Workflow
Collect W-9s digitally and keep all contractor information organized for easy 1099 preparation.
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