The purpose of a W9 form is to request tax payer identification to determine tax status clarification for vendors. The form certifies if the vendor is exempt from backup withholding and also clarifies if the vendor should receive a 1099 for payments made.

Obtaining W-9 Forms for 1099 processing should not be a year-end event. Get into the habit of requesting a W-9 form at the point a new vendor is used; in fact, don’t issue the first check until the W-9 form is received! Once the form is received, be sure to populate the appropriate field in your accounting software. These steps will take the stress out of 1099 compliance.

  • Obtain W-9 forms as soon as a new vendor is used
  • Don’t pay the vendor until a completed W-9 form is on file
  • Update your accounting software and identify 1099 eligibility
  • Keep an electronic record of the completed W-9 form
  • Make 1099 processing seamless!!