The Electrical Contractor Network

ECN Electrical Forum
Discussion Forums for Electricians, Inspectors and Related Professionals

Books, Tools and Test Equipment for Electrical and Construction Trades

Register Now!

Register Now!

We want your input!

Featured:
   

2017 NEC and Related
2017 NEC
Now Available!

   
Recent Posts
230 or 345 kV transmission lines?
by Vlado
Yesterday at 09:33 AM
breaker meltdown
by crselectric
Yesterday at 12:42 AM
Electrical mast flashing product
by ThomasWinfrey
09/22/16 12:14 AM
What estimating software do you recommend?
by sparky
09/21/16 07:20 PM
"Dry Run" Inspection goes awry
by HotLine1
09/20/16 07:39 PM
New in the Gallery:
12.5A through 0.75mm˛ flex (just out of curiosity)
Shout Box

Top Posters (30 Days)
HotLine1 17
gfretwell 9
sparky 9
sparky66wv 8
Vlado 6
Who's Online
0 registered (), 284 Guests and 4 Spiders online.
Key: Admin, Global Mod, Mod
Topic Options
Rate This Topic
#200989 - 05/01/11 02:36 PM Electrical Contractors & W-9 form questions.
Trick440 Offline
Member

Registered: 08/15/05
Posts: 248
Loc: Waterford, MI, USA
Ok I own my electrical company and for some reason I have been getting away with telling people I don't do w-9 forms.

I have been saying this because in the past I asked my accountant about these and he said, don't worry about it. I have no clue about taxes. I have an accountant that I give my Quickbook files to at the end of the yr., reciept totals and he askes me a few generic questions. I pay what the forms say when hes done and thats it taxes are done.

Now it seems everyone is requesting a W-9.

So my question is, if I start filling out w-9s for people am I going to get a bunch of 1099 at the end of the yr?

(I would ask my accountant, but he not availible and I'm filling some of these out today)


Edited by Trick440 (05/01/11 02:36 PM)
_________________________
Shake n Bake

Top
Business, Office, Estimating, Legal:
#200991 - 05/01/11 03:58 PM Re: Electrical Contractors & W-9 form questions. [Re: Trick440]
renosteinke Offline
Cat Servant
Member

Registered: 01/22/05
Posts: 5299
Loc: Blue Collar Country
Have you been cheating?

Let's back up a bit. IRS rules require that you begin witholding taxes from any employee after you pay them $600 in one year. Your one 'escape' from this is if the payments were made to 'contractors,' rather than 'employees.'

The W-9 form is used by your customers to document that you were a contractor, and not an employee. If their books are checked, the W-9 is another link in the chain.

1099's are another matter. Keep in mind that the customer is under no obligation to send YOU a 1099. It is very possible that an audid of your books might have, as its' original reason, a desire to confirm data provided by a customer; the customer might be the real target. If the ABC Co. claims to have paid you $50K last year, and your records indicate you only billed them for $1K, there's a problem somewhere.

A similar type of investigation has resulted in some simply massive enforcement actions against illegal workers and their employers. Joe Smith is asked why he failed to report wages that he never received - the employer was using Joe's identity to 'document' an illegal. The employer usually gets this information from job applications.

I would not woory about 1099's. I would worry about providing your accountant with accurate information.

Top
#200997 - 05/02/11 02:36 AM Re: Electrical Contractors & W-9 form questions. [Re: Trick440]
Scott35 Offline

Broom Pusher and
Member

Registered: 10/19/00
Posts: 2724
Loc: Anaheim, CA. USA
Reno is correct...

The Form W-9 is a Request for Taxpayer Identification Number
and Certification.

The Client requests the Form W-9 from you. You obtain the form, fill out the information, then submit to the Client.
The Client then submits the 1099-MISC Forms, per the data on the W-9.

The Form I-9 is the one your Employees fill out, to declare legal Employment status.

-- Scott
_________________________
Scott " 35 " Thompson
Just Say NO To Green Eggs And Ham!

Top
#201096 - 05/09/11 11:10 PM Re: Electrical Contractors & W-9 form questions. [Re: Trick440]
Tesla Offline
Member

Registered: 06/16/04
Posts: 1280
Loc: Sacramento, CA
IF you are a sole proprietorship then your TIN is your social security number.

Unless you've ( weirdly ) managed to establish a separate employer TIN.

These days, with identity theft -- more and more sole proprietors are going to want a TIN different from their social security number.

Talk to your tax man.
_________________________
Tesla

Top
#201097 - 05/10/11 05:59 AM Re: Electrical Contractors & W-9 form questions. [Re: Trick440]
renosteinke Offline
Cat Servant
Member

Registered: 01/22/05
Posts: 5299
Loc: Blue Collar Country
Not TIN ... it's EIN ... and getting one is as easy as a few mouse clicks on your computer. Just google EIN and the links will pop right up.

Top
#203605 - 10/12/11 07:02 PM Re: Electrical Contractors & W-9 form questions. [Re: Trick440]
mikethebull Offline
Member

Registered: 03/18/07
Posts: 101
Loc: Rhode Island
The answer is no . But at the end of the year the IRS is gonna want their share. Determine what "your contract" with your customer dictates.

Top
#203620 - 10/13/11 11:32 AM Re: Electrical Contractors & W-9 form questions. [Re: Trick440]
HotLine1 Offline

Member

Registered: 04/03/02
Posts: 6785
Loc: Brick, NJ USA
You may want to find another accountant!
_________________________
John

Top



ECN Electrical Forums - sponsored by Electrical Contractor Network - Electrical and Code Related Discussion for Electrical Contractors, Electricians, Inspectors, Instructors, Engineers and other related Professionals