Overview of Form W-9
A W-9 is a tax form used by the IRS to collect information from U.S. contractors and loan-out companies. It serves several important purposes:
Collects your Taxpayer Identification Number (TIN) - either your Social Security Number (SSN) for individuals or Employer Identification Number (EIN) for loan-out companies
Verifies your tax classification - particularly important for loan-out companies, which must be either S Corporations or C Corporations when working with Wrapbook
Provides certification that:
Your TIN is correct
You're not subject to backup withholding
You are a U.S. person
The information you provide on your W-9 must exactly match your tax records to ensure accurate tax reporting.
Who needs to complete Form W-9
Form W-9 (Request for Taxpayer Identification Number and Certification) is required for all U.S. contractors and loan-out companies working through Wrapbook.
Why Form W-9 is important
Workers classified as loan outs must complete Form W-9 In order to use Wrapbook. If you don't fill out a W-9 when required:
You won’t be able to submit your timecards or receive payments
You may be subject to backup withholding, where the payer must withhold a percentage of your payments to ensure tax compliance
Your payments will be subject to mandatory 1099 reporting regardless of the amount
How to Fill Out Your Form W-9
Use the steps below to complete your Form W-9:
Line 1: Name
For individuals/sole proprietors: Enter your name as shown on your tax return
For loan-out companies: Enter your business name as registered
Line 2: Business Name (if different)
For individuals: Leave blank if not applicable
For loan-outs: This line is typically left blank as the business name is entered on Line 1
Line 3: Federal Tax Classification
For loan-outs: Check either "S Corporation" or "C Corporation"
Note: Wrapbook only accepts S-Corps and C-Corps for loan-out companies
Line 4: Exemptions Leave blank unless you qualify for exemption from backup withholding
Lines 5 and 6: Address Enter your complete mailing address
Line 7: Account Numbers Optional - you may leave this blank
Part I: Taxpayer Identification Number (TIN)
For individuals: Enter your Social Security Number (SSN)
For loan-outs: Enter your Employer Identification Number (EIN)
Part II: Certification Sign and date the form to certify that:
The TIN you provided is correct
You are not subject to backup withholding
You are a U.S. person
Important Notes
All information must match your tax records exactly
The form must be signed and dated to be valid
Backup Withholding
Backup withholding is a tax requirement where a payer must withhold a percentage of payments to ensure tax compliance.
When backup withholding applies, 1099s must be issued regardless of the payment amount
For loan-out companies, this means:
Wrapbook becomes the payer of record
1099s are issued with Wrapbook's tax ID (FEIN) instead of the client's
Backup withholding may be required in certain situations, such as:
If you provided an incorrect TIN (Taxpayer Identification Number)
If you have previously underreported interest or dividend income
If you have failed to report interest, dividend, or patronage dividend income to the IRS
If you failed to certify that you're not subject to backup withholding
When you sign the W-9, you are certifying that you are not subject to backup withholding. If circumstances change and you become subject to backup withholding, you must notify the payer.