Why Collecting W-9s Is Crucial for Your Business

When you’re running a business, independent contractors and specialized vendors often play a big role in your success. But when year-end rolls around, one simple form—often overlooked—can create a lot of headaches if it isn’t collected: the W-9.

Why W-9s Matter

The IRS requires businesses to issue 1099-NEC forms to contractors paid $600 or more during the year. To complete these forms accurately, you need the contractor’s legal name, address, and taxpayer identification number—all provided on a W-9. Without it, you risk delays, incorrect filings, and even IRS penalties.

The Best Time to Collect W-9s

The smoothest process is to request a W-9 before paying a new vendor or contractor for the first time. By making it part of your onboarding process, you avoid chasing down paperwork later. However, if you haven’t done that this year, now—at year-end—is the time to catch up.

How to Simplify the Process

• Review vendor payments: Pull a year-to-date report to identify anyone you’ve paid $600 or more.

• Request forms promptly: Reach out to contractors now, before the year-end rush.

• Stay organized: Store W-9s securely in your bookkeeping or payroll system for quick access.

The Bottom Line

Collecting W-9s may feel like a small detail, but it protects your business from compliance issues and ensures a smoother tax season. When your records are complete, issuing 1099s in January becomes quick and painless.

 How We Can Help

We track all the vendors and contractors you add each month, making sure nothing slips through the cracks. We can either request the W-9 directly from the vendor or guide you in obtaining it. By incorporating W-9 collection into your standard vendor onboarding process, you’ll eliminate the year-end scramble and stay compliant effortlessly.