Payroll
Form W-9
The IRS form a business collects from every vendor and contractor to capture their legal name, entity type, and taxpayer ID before paying them.
A W-9 is not filed with the IRS — it lives in your records. It gives you everything you need to issue a correct 1099 at year-end: the payee's legal name, business name, entity classification, address, and taxpayer identification number (SSN or EIN), signed under penalty of perjury.
The operational rule that saves January pain: no W-9, no payment. Collect the form before the first check goes out. Chasing a contractor for their tax ID in late January — after the working relationship has ended — is one of the most common 1099-season fire drills.
The W-9 also tells you whether a 1099 is required at all. If the payee certifies they are a C-corp or S-corp, most service payments don't need a 1099 (attorney fees being the big exception).
Common pitfalls
- Paying a contractor all year without a W-9, then discovering the name and TIN don't match IRS records — mismatches trigger backup withholding notices
- Accepting a W-9 with a DBA name but no legal name — the IRS matches on the legal name, not the trade name
- Not refreshing W-9s when a vendor changes entity type — an LLC that elected S-corp mid-year changes your 1099 obligation
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