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This question is about w9 vs w2.

Who is exempt from providing a W-9?

By Zippia Team - Dec. 7, 2022

Contractors who are based outside the U.S. or who are paid less than $600 a year by a single company are exempt from providing a W-9.

Instead of a W-9, an independent contractor that is based outside of the U.S. will fill out Form W-8BEN if they're an individual or W-8BEN-E if they're an LLC or other business entity.

In addition, if you pay an independent contractor less than $600 in a tax year, you don't have to ask them for a W-9 or file 1099. However, you'll need to make sure your company is keeping good records of how much you're paying contractors throughout the year to make sure you meet these criteria.

Just to be safe, it's a good practice to request a W-9 from every contractor you employ, whether you're planning to pay them more than $600 or not. This way, if you do end up paying them more than that, you'll have all their information ready to go when you file 1099s and won't be scrambling at the last minute.

Who is exempt from providing a W-9?

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