Liquid was built to make it easier for US companies to work with on-demand talent, whether through agencies or directly as independent contractors.
What is IRS form W-9
In the US, a W-9 form is an Internal Revenue Service (IRS) tax form that is used to confirm a person or entity’s name, address, and taxpayer identification number (TIN) for employment or other income-generating purposes.
If US companies fail to collect a W-9 form from their contractor and do not issue the required 1099 form, the IRS will hold the company responsible for not withholding 28% tax on the amount paid and assess penalties for not issuing the required form. The penalties are $260 for each failure to file and an additional $260 for each failure to issue a required 1099 Form.
Why do I have to fill out a W-9 form in Liquid?
Liquid was built to make it easier for US companies to work with on-demand talent, whether through agencies or directly as independent contractors. Since US companies must collect a W-9 form from their contractors or face stiff and severe penalties, Vendors who use Liquid with their Clients must fill out a W-9 Form.
Is my W-9 form information secure?
Your W-9 form is secure in Liquid. Only designated users of Liquid at your Client will only be able to view this sensitive tax data.