When a certain individual is about to be hired by new employer, there are will be quite a lot of papers that will have to be filled in. One of these papers is W-4 form; however in some circumstances the potential employer may provide 2020 W-9 form, which may be found a little bit confusing. For that reason, it is crucial to know the difference and find out why this happens and what are the main differences between these two papers as well as what stand behind the process.
The actual purpose of W-9
The actual purpose of W-4
|When it comes to analyzing what W-9 form stands for, it becomes apparent that this is slightly different to W-4. The main difference between two papers is that fillable 2020 W9 from is initially designed for contractor. You are about to provide roughly the same information just like in W-4 from as well as the employer will also send it to Internal Revenue Services by themselves. However, the main difference is that the employee will not be obliged to deduct the taxes that you are about to pay top the government. It is going to be purely yours responsibility to be in charge of the process. Consequentially, no single cent will be deducted from your paycheck, whereas it will be entirely your responsibility to pay all the taxes that you obliged to pay by the law.||In most of the cases an employer will provide its potential employee W-4 form. The job provider will print w 9 form 2020 among many papers that will have to be filled in. After it is filled out and send to the authorities it will determine the amount of tax an employee is obliged to pay. The paper is initially meant to find out the identifying information including your full name, address, and social security number. The information is then being sent to Internal Revenue Services and the amount of tax deducted from your paycheck on monthly basis. Provided information is very important because the taxes are paid on monthly basis hence if not enough tax is paid throughout the whole year, an employee may be obliged to pay more in April when that tax year ends.|
Why W-9 from is given instead of W-4?
The obvious question that many people will ask why W-9 form is given to be filled out when W-4 was expected. Well, the answer is very simple! Your employer may simply regard you as an independent contractor hence W-9 form is provided for you. It could be a temporally job or perhaps your duties are regarded to classify you as independent contractor.
For instance, if you are freelancer and do your job from a distance your activities may be perceived differently compare to the activities of an ordinary employee. Additionally, if your work as an associate, you may also be regarded as a contractor hence W-9 from is given to you. Both W-9 and W-4 form are constantly updated and minor changes to the layout and details to provided information can be made by the authorities. The most important thing that has to be remembered is that in the case with W-9 form, you will be obliged to make tax payments by yourself!