Revenue Service Forms

Form 1099

Independent contractors or self-employed individuals should receive a Form 1099-MISC from each business client that pays them at least $600 during the tax year. It is recommended that independent contractors or self-employed individuals should sign a 1099 form before receiving payment as it is sometimes difficult to get the form signed retrospectively.

Form I-9

This is used for verifying the identity and employment authorization of individuals hired for employment in the United States. All US employers must ensure proper completion of Form I-9 for each individual, including citizens and non-citizens, they hire for employment in the United States.

Form W-2

Every US employer engaged in a trade or business who pays remuneration, including non-cash payments of $600 or more for the year (all amounts if any income, social security, or Medicare tax was withheld) for services performed by an employee must file a Form W-2 for each employee (even if the employee is related to the employer) from whom:

  • Income, Social Security, or Medicare tax was withheld.
  • Income tax would have been withheld if the employee had claimed no more than one withholding allowance or had not claimed exemption from withholding on Form W-4, Employee’s Withholding Allowance Certificate.

Form W-4

Form W-4 (officially, the “Employee’s Withholding Allowance Certificate”) is an Internal Revenue Service (IRS) tax form completed by an employee in the United States to indicate his or her tax situation (exemptions, status, etc.) to the employer. The W-4 form tells the employer the correct amount of federal tax to withhold from an employee’s paycheck.

Form W-8

A W-8 form is a grouping of tax forms specifically for non-resident aliens and foreign businesses who have either worked in or earned income in the US. It declares the applicant’s status as a non-resident alien or foreign national and informs financial companies that they will be taxed differently than a resident. They are only for foreign people and/or entities without citizenship or residency—a US resident or resident alien will never be required to fill out a W-8 tax form.

W-8 is another good reason to incorporate US company with a US address and telephone number!

Form W-9

Individuals or entities that are required to file certain information returns with the IRS use Form W-9 to request the taxpayer identification number (TIN) from US persons and resident aliens for the required reporting. Taxpayers that do not reply to W-9 requests with their correct TIN may be subject to backup withholding.