as an independant contractor, do you need to fill out a w-9 for a job done under $600.00?

Question

work was for $180.00 including material. its not that i am not trying to claim it on my taxes as earnings, I just want to get my $180.00 now without jumping thru all these hoops to get paid! p.s they're also asking for "certificate of insurance" . Is it required for me to give them that to get my $180.00 payment?

insurance certificate was not ask for at any time except now at payment time!

I have no employees so i dont need workers comp insurance... i believe they are asking about liability insurance. Again, they did not ask at the time work began, only now when it's time to pay. According to everything ive researched, since its under the $600.00 rule they need to pay me now. Especially when it was quality work done on time that they were thrilled with!
Here's some thing else i found online in the IRS tax code......Under the Tax Equity and Fiscal Responsibility Act (TEFRA), Section 6401 of the Internal Revenue Service Code only requires companies to secure a W-9 form from suppliers to which you pay in excess of $600.00 in any calendar year.

Answer 1

The company/person that you did the work for needs your SSN or tax ID # to fill out a 1099 for you. They want to have it for support for THEIR tax deduction. By filling out the W-9, you will give them your SSN or tax ID #.

For the certificate of insurance, they want to know that you have insurance in case something goes wrong with your work. However, if they did not require a certificate of insurance when you were hired for the job, then point that out to them. If it was a requirement, then you need to produce one in order to get paid.

Answer 2

Steve is right about the company needing your SSN for 1099 forms. Tanya E. is right that the company could be held responsible for paying W/C premiums on the amount they paid you.

You are wrong about W-9's and the $600. The W-9 is requested to get your SSN and to certify that you are not subject to backup withholding. Backup withholding has no minimum or maximum amount associated with it, so any company can ask for and is entitled to receive a W-9 form regardless of how much they will pay you in a year. A company does not have to issue 1099 forms for goods or services provided by Corporations (except professional corporations like law firms) or anyone else to whom payments did not equal or exceed $600 in the calendar year.

Self-employed people without employees generally cannot obtain workers compensation insurance policies. As Tanya mentioned, the company can be charged a premium to cover uninsured contractors by their W/C carrier, unless they can produce certificates of insurance showing that the contractor was insured.

Answer 3

Were you subbing for someone else or did you sub out to someone else? Generally, if you earn under $600.00 from an EMPLOYER in a calendar year you do not have to claim it. However, you are a contractor. You are supposed to record and report all income from your business. You can only get away with not reporting your income (not legally) by being paid in cash. If your customer asks you for a receipt at the end of the year to declare capital improvements on their property, then, you are sunk.

If they are asking for the certificate then you should show it to them if you have one. Anything to speed along getting paid. The w-9 thing sounds bizarre though. Is your customer requiring that you file the w-9? I'm just wondering if you are getting jerked around. Is he trying not to pay?



Updated again 9/15/06:
Did you get paid yet? If not then you need to file a mechanic's lien. Sounds like a bold move but it is a good motivator for payment. It will go on their credit report if not resolved. Won't look too good if they try to sell their house, apply for a loan etc.

One more thing, in Ohio you don't have to carry Worker's Compensation Insurance if you operate as a sole proprietorship with no employees. You can not file your taxes as a LLC or an S-Corp.

Answer 4

As an Independent Contractor you want to keep track every job you do. You also want to keep track of the gas you spend, the tools you buy the supplies you you buy or rent, the money you spend on meals, the amount you pay others for help, the mileage you use, and if you use your cell phone for your business the bills you pay on it. These are all tax deductions and pay off at the end. Those who think they have to pay taxes at the end of the year think they are getting screwed, but really it goes into your social security funds. You can get it back! Oh, I forgot! you do want to get business insurance. This does help and it is also a tax deduction.

Answer 5

In addition, if you do not have a worker's comp, they are likely to deduct the premiums from you, because they pay for the employees and subcontractors without insurance.

Answer 6

yes, anything under $400 per year!