Get the W-9 Before You Write the Check: A Simple Guide for Business Owners
You hired a subcontractor in March. They finished the job. You paid them. Everybody moved on. Now it's January, and your accountant needs their W-9. You call. No answer. You email. Nothing. Suddenly, a simple piece of paperwork becomes a year-end headache. There's an easier way to handle this.
Collect a completed Form W-9 before issuing the first payment to a new subcontractor.
What Is Form W-9?
Form W-9 is an IRS form used to request a taxpayer's identifying information.
It generally provides:
Legal name
Business name, when applicable
Federal tax classification
Mailing address
Taxpayer identification number
Required certifications
Businesses use this information to help determine their information-reporting obligations.
The completed W-9 is generally kept in your business records rather than routinely filed with the IRS.
When Should You Request a W-9?
Our recommendation is simple: make it part of your onboarding process. Before a new subcontractor receives their first payment, request their completed W-9. Don't wait until their payments reach the reporting threshold. You might hire someone for a small job today and use them for several additional projects later. Collecting the information upfront helps prevent problems when payments accumulate.
Does the New $2,000 Threshold Change This?
The Form 1099-NEC reporting threshold increased from $600 to $2,000 for qualifying payments made during 2026. However, the new reporting threshold doesn't eliminate the value of collecting W-9s. You still need to determine whether a vendor is reportable, maintain accurate records, and consider other reporting requirements. Missing taxpayer identification information may also create backup withholding obligations.
A Simple Subcontractor Onboarding Checklist
Before issuing the first payment:
Obtain the completed W-9.
Confirm the legal name and business information.
Review the federal tax classification.
Establish the vendor in your bookkeeping system.
Store the completed form securely.
Record payments consistently throughout the year.
Avoid sending completed W-9s containing taxpayer identification numbers through unsecured communication channels. Use a secure document-exchange method.
What If You Already Paid Someone Without Getting a W-9?
Request the form as soon as possible. Review the vendor's payment history and determine whether reporting or backup withholding requirements apply. Don't assume you can simply wait until the end of the year. If you're uncertain about the proper treatment, discuss the situation with your tax professional.
Why Monthly Bookkeeping Matters
Business owners often think bookkeeping is only about recording income and expenses.
But good bookkeeping also creates useful financial records. When subcontractor payments are recorded consistently, it's easier to review who received payments and how much they were paid during the year. It also makes it easier to identify potential reporting issues before tax season. For contractors, landscapers, cleaning businesses, repair companies, and other service businesses, subcontractor payments can represent a significant part of operating expenses. Keeping those records organized is simply good business management.
Make Year-End Easier on Yourself
Don't wait until January to find out your vendor records are incomplete. Review your subcontractor list now. Make sure your W-9s are on file. And if your bookkeeping hasn't been maintained consistently throughout the year, consider getting it organized before year-end. Belshaw Accounting, Tax & Advisory Services helps service-business owners with monthly bookkeeping, bookkeeping cleanup, business tax preparation, and advisory services. We work virtually with small businesses throughout Greater Tampa Bay, including Holiday, Trinity, New Port Richey, Tarpon Springs, and surrounding communities
Frequently Asked Questions
Do I need a W-9 from every subcontractor?
Collecting a W-9 when onboarding a new subcontractor is a sound business practice. It helps establish the vendor's identifying information and tax classification.
Do I send Form W-9 to the IRS?
Generally, no. The requester keeps the completed W-9 in its records.
What if a subcontractor refuses to provide a W-9?
Request the required information and review whether backup withholding or other reporting obligations apply. Do not assume the payment can be ignored.
Can I collect a W-9 electronically?
Yes, subject to applicable requirements. Use a secure process to protect taxpayer information.
Does a subcontractor need to provide a new W-9 every year?
Not automatically. Request an updated form when relevant information changes or a new form is otherwise needed.
General educational information. Specific reporting and withholding requirements depend on individual circumstances.
Visit our official website belshawaccounting.com or contact our office:
Phone:Â (727) 916-7410
Email: admin@belshawaccounting.com
Paul Belshaw, MSCTABelshaw Accounting Tax and Advisory Services LLC
Holiday, Florida
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