W9.. quick question

[xxweekxx]

Ok i have 2 quick questions.. I have an LLC

1. Say i pay someone to do design job for me, etc, and i dont W9 them, does it matter? I could just write it off as an expense as long as i have records?

2. Say i hire kids here and there to do work for me, pay them via paypal, but all were paid under $100 each, if i dont send any tax forms does it matter? (I dont care if i can write this off or not, just want to know if its legal not to W9 people if you send them <$600)

[Deej]

Originally Posted by xxweekxx

Ok i have 2 quick questions.. I have an LLC

1. Say i pay someone to do design job for me, etc, and i dont W9 them, does it matter? I could just write it off as an expense as long as i have records?

2. Say i hire kids here and there to do work for me, pay them via paypal, but all were paid under $100 each, if i dont send any tax forms does it matter? (I dont care if i can write this off or not, just want to know if its legal not to W9 people if you send them <$600)

no - i dont think you have to W-9 someone for buying their services... If that designer was an independent contractor that you "employed" for a long peroid of time and of course making well over 600 then maybe... but not for buying their service once in the past...

[stickyfingerz]

Originally Posted by Deej

no - i dont think you have to W-9 someone for buying their services... If that designer was an independent contractor that you "employed" for a long peroid of time and of course making well over 600 then maybe... but not for buying their service once in the past...

Yes I'd say that is correct.

[xxweekxx]

nice.. and i can def write off as expense.. im asking cuz im using paypal a lot lately paying designers to do work for me.. etc.. i didnt invoice them but id hope i can write all this off..

as for my second question?

[Deej]

if it benefits your business of course you can write it off...

[xxweekxx]

but what if i dont W9 them?

[Deej]

Originally Posted by xxweekxx

but what if i dont W9 them?

I dont w-9 the gas stations i write off for gas - or the electric company for my power...

I dont w-9 dell for my computer....

I dont w-9 my internet provider...

Ya feel me?

Its all in the employ area...

do you employ...

independent contractors you dont "employ" but you do make long term arrangements that would require a w-9

theres a line - easily visible - its gray but i can see it clearly... squint if you have to...

see it?

[xxweekxx]

what if i use someone for part time work that takes one day.. do i have to w9 them

[Deej]

Originally Posted by xxweekxx

what if i use someone for part time work that takes one day.. do i have to w9 them

stay safe & w-9 everyone you ever pay

[xxweekxx]

Originally Posted by Deej

stay safe - w-9 everyone you pay

thats what im wondering.. is it a LEGAL requirement?

Say i pay someone $50 for 2 day job online to do some crap for me.. but i dont wanna write it off, do i legally have to W9 them?

[Deej]

Originally Posted by xxweekxx

thats what im wondering.. is it a LEGAL requirement?

Say i pay someone $50 for 2 day job online to do some crap for me.. but i dont wanna write it off, do i legally have to W9 them?

contact a lawyer - my info is useless here...

[stickyfingerz]

Originally Posted by xxweekxx

thats what im wondering.. is it a LEGAL requirement?

Say i pay someone $50 for 2 day job online to do some crap for me.. but i dont wanna write it off, do i legally have to W9 them?

Even if they sub contract you don't 'have' to w9 them unless they make 600 or over a year from you.

[xxweekxx]

Originally Posted by stickyfingerz

Even if they sub contract you don't 'have' to w9 them unless they make 600 or over a year from you.

thats what i was trying to find out... cause im doing this new thing where ill be using 2-3 different dudes a day and paying them like $50 each..

So in a year probably use easily 500-600 different people..

The W9 will be a bitch. I dont care about writing this off, i just want to know i wont get arrested or some crap for not W-9'n them

[Deej]

Originally Posted by xxweekxx

thats what i was trying to find out... cause im doing this new thing where ill be using 2-3 different dudes a day and paying them like $50 each..

So in a year probably use easily 500-600 different people..

The W9 will be a bitch. I dont care about writing this off, i just want to know i wont get arrested or some crap for not W-9'n them

you are better off contacting your state than asking here on gfy...

[PersianKitty]

A 1099-MISC needs to be issued by your trade or business under many situations when you pay someone for rent, services, royalties or other various fees.

Calculate if you paid $600 or more during the tax year in the course of your trade or business to an individual or partnership. Professional fees to an attorney, doctor or other professional are included. Payments to corporations are included only if they are for medical, health care, legal or fishing activities.

Determine that you paid $600 or more in compensation for services rendered by a nonemployee to your trade or business. Include the gross amount of payments in box 7, including anything you paid the contractor for supplies and materials.

Determine that you paid $600 or more in rent for office space, machines, equipment or land in the course of your trade or business. Write the amount in box 1. Do not include amounts paid to corporations or real estate agents.

An independent contractor receives a 1099-MISC only if you pay him in the course of your trade or business.

# Intentional disregard of the filing requirement can result in a penalty of $100 per form, with no maximum penalty.
# An incorrect tax identification number (TIN) on the form is considered the same as not filing at all.


Essentially - anyone you will potentially pay $600 a more in a calendar year for a service that you consider an expense of your business needs to provide you with a completed W-9. You must complete a 1099-MISC for them unless they are a corporation ( the only way to know that is via a W-9). If you are audited, the IRS will want a list of your expenses by who they were paid to. If any of those are over $600 for the year, they will want to see the corresponding 1099-MISC or the W-9 showing that they are a corporate entity.

[woj]

Accountants are great for questions like that, just ask him/her next time you do your quarterly taxes...

[Deej]

Originally Posted by PersianKitty

A 1099-MISC needs to be issued by your trade or business under many situations when you pay someone for rent, services, royalties or other various fees.

Calculate if you paid $600 or more during the tax year in the course of your trade or business to an individual or partnership. Professional fees to an attorney, doctor or other professional are included. Payments to corporations are included only if they are for medical, health care, legal or fishing activities.

Determine that you paid $600 or more in compensation for services rendered by a nonemployee to your trade or business. Include the gross amount of payments in box 7, including anything you paid the contractor for supplies and materials.

Determine that you paid $600 or more in rent for office space, machines, equipment or land in the course of your trade or business. Write the amount in box 1. Do not include amounts paid to corporations or real estate agents.

An independent contractor receives a 1099-MISC only if you pay him in the course of your trade or business.

# Intentional disregard of the filing requirement can result in a penalty of $100 per form, with no maximum penalty.
# An incorrect tax identification number (TIN) on the form is considered the same as not filing at all.


Essentially - anyone you will potentially pay $600 a more in a calendar year for a service that you consider an expense of your business needs to provide you with a completed W-9. You must complete a 1099-MISC for them unless they are a corporation ( the only way to know that is via a W-9). If you are audited, the IRS will want a list of your expenses by who they were paid to. If any of those are over $600 for the year, they will want to see the corresponding 1099-MISC or the W-9 showing that they are a corporate entity.

And thats that...