A company required to file an “information return”, like a 1099 form, must obtain the correct taxpayer identification number (TIN) and name from the person or company (payee) that they paid. The W-9 form is used to gather this information from all US persons, including companies. (Foreign persons, including companies, typically submit a W-8 form.) In addition, the W-9 form also communicates whether a payee is exempt from backup withholding and FATCA reporting. The W-9 form provides six pages of instructions for the payee to help them determine the correct name, federal tax classification, exemption status, TIN and certification to use. Using W9manager’s step-by-step process to create a W-9 form can help you comply with all these IRS regulations. We also help you stay current when the form and instructions are revised regularly by the IRS.
Yes. In the Instructions for the Requester of Form W-9 the IRS states that “requesters may establish a system for payees and payees’ agents to submit Forms W-9 electronically, including by fax. A requester is anyone required to file an information return. A payee is anyone required to provide a taxpayer identification number (TIN) to the requester.”
Electronic signatures are more secure – and get the job done faster and cheaper – than paper-based signatures.
Cover the whole document – If a paper document has two or more pages, and the signature is only applied to a single page – unsigned pages could be changed without anyone’s knowledge. With W9manager, all pages are included in a single PDF when the user’s signature is applied, ensuring the original signed document is not altered.
Can’t be duplicated with a copier or scanner – It’s too easy to forge a paper signature by copying it, scanning it, or tracing it with a pen. With an electronic W-9, a signature is bound to a specific instance of the document and tracked as part of a multi-step signature process. A signature that’s been applied to one document can’t be applied to another.
Can’t be backdated – With paper signatures, signers are free to enter any date or time they choose, making it possible for one of the parties to change the “active” date of the signing without notifying other parties. With an electronic W-9, the time is centrally managed by the hosted service and backdating is not allowed.
Are much easier to authenticate – Authenticating a paper signature requires another handwritten signature from the same signer for forensic comparison. If additional signature samples aren’t available, authenticity can’t be proven. With an electronically signed W-9 form basic authentication of the signer is accomplished via their email address. The signer’s email address is authenticated during the W9manager user validation process. In addition, a detailed electronic signature certification form is attached to each electronic W-9 form. This certification form documents each step of the W-9 form creation and signature process, records the user’s IP address and notes the time and date of each step’s completion.
W9manager’s guided process helps users looking to create a W-9 navigate the complex IRS regulations in a way that a paper W-9 can’t. The entire process has been created to help users create a correct, complete and signed W-9. Help buttons provide contextual guidance during every step of the process. Guided questions help the user determine the correct name, tax classification and TIN number to provide. These items seem simple but are often not completed correctly. For example, single member Limited Liability Companies with one owner are disregarded by the IRS and should provide the name and TIN number of the first owner that is not another disregarded entity. Sole proprietors and independent contractors can avoid using their SSN. We show you how.
Yes, one user can create a W-9 form and another user can sign the W-9 form. To do this, create the W-9 form and then in final signature step select the “Send” tab to select another user to sign the W-9 form. The signer will then receive an email requesting that they sign the form within the application. They will also receive a signature request alert each time they log into W9manager.
Yes. There are three user levels – Administrator, Manager and User. Administrators have full access. Managers can do everything except setting up users and managing plans/payments. Users only have access to request a W-9 and confirm receipt. They cannot view the W-9 form itself or access vendor detail screens.
No. We have built W9manager to be as customer friendly as possible. Users have full access to all functions of W9manager during the 14 day trial period and 10 test W-9s. After the trial period ends all users will continue to have access to create and send their own W-9.
No. All plans come with unlimited users and companies.
The business plans in W9manager allow companies to determine if payments made to their vendor are reportable on a 1099-MISC form. The vendor’s tax classification is obtained from the electronic W-9 form and compared to the type of payment selected by the user. With both pieces of information, the system is able to determine if the vendor payment is reportable or likely not reportable. Note: The reportability review is not intended for the financial and securities industries that have very specific regulations.
One of the areas we are very excited about is creating the ability for both the payee and the payor to come together and avoid the typical required mailing of 1099 forms. This IRS required process wastes a tremendous amount of paper and natural resources each year as millions of 1099s are mailed. When creating a company in W9manager the user is asked if they would like to consent to electronic delivery of their 1099 forms. This legal consent allows all 1099 forms to be delivered using only electronic means. Electronic delivery is typically a much faster way to receive your 1099 forms than with the postal service. Note that the ability to deliver the 1099 electronically will depend on the payee’s technical ability.