Form W-9 for 2014 is used by employers to prepare payroll checks for their employees, TurboTax explains. An independent contractor or an individual who has his own business might be asked to complete a W-9 form for accurate payment processing.
When completing Form W-9, a person needs to provide his full legal name and the name of his business if he's operating under a different name, TurboTax advises. The tax classification options on the form include partnership, estate, entity and sole proprietor. The Social Security number, employer identification number also need to be included, and if the taxpayer is a nonresident immigrant without a Social Security number, he should provide his taxpayer identification number.
Independent contractors who are paid at least $600 by a business or individual has those earnings reported to the IRS by way of a 1099-MISC form. In order to accurately fill out the 1099-MISC, businesses use the information provided on a W-9 form. Even those businesses and individuals who don't withhold payroll taxes still must verify the amounts paid to the IRS, Investopedia explains. Businesses use the information on the W-9 form provided to report to the IRS the employees who have taxes withheld every pay period.