Have you ever wondered what to do with payees who need a 1099-MISC but never completed a W-9?
Has the IRS sent you a letter stating your company should have withheld money from past payee disbursements and demanding immediate payment of 28% of those amounts?
Find out how these, and other, sticky situations can be avoided with a proper understanding of Form W-9.
Getting the information you need from payees can be difficult even when you know exactly what you’re looking for. Those problems are compounded when the forms and rules are complicated, hard to understand, harder to follow and fraught with sometimes scary consequences. You may receive a B Notice, or discover one of your payees withheld the fact that he or she is not a U.S. Citizen. Knowing the rules governing back-up withholding and the Form W-8 series can prepare you to handle these circumstances with confidence. Understanding the W9 information-gathering techniques the IRS regards as acceptable lets you know just how creative you can be in your approach without crossing the line. The more effective your information collection efforts are, the less likely it is that your company will be charged penalties and interest related to non-compliance.
Many companies cost themselves a lot of money by neglecting one of the simplest tasks the IRS asks them to perform. Fines and penalties for improper handling of processes surrounding the W-9, W-8 and associated reporting requirements may be as little as $50, but they can exceed 30% of total payment made to each payee. These simple, money-saving processes are neglected by accounting departments across the country. Take this one-hour webinar to avoid being one of them.
What You'll LearnIdentify W-9 payees
Avoid common misconceptions about the W-9/1099 relationship
W-9 information collection options
Understand the B Notice Process
Identify who should complete one of the W-8 series forms and why
Fulfill backup withholding responsibilities
Know the difference between a U.S. Resident and Non-Resident Alien
Send Form 1042-S to the appropriate payees
Avoid penalties for late filing or non-compliance
‘Willful Neglect’ and what constitutes ‘Reasonable Cause’
Tips for collecting W-9 information from difficult payees
Bonus benefits you will reap for having good W-9 procedures
Who Will BenefitManagers, Payroll Professionals, Accounts Payable Professionals, HR Professionals, Supervisors — Any other professionals who have any input into the hiring or selection of people.