When working with subcontractors and outside service providers, it is important that you obtain a Form W9 from them so that you can are in compliance come tax time. Many contractors don’t want to complete one because they don’t want to report the income. But don’t let them convince you that not getting one is the right thing to do. Your number one priority is to protect you business which means you MUST get one from them. This is why I usually recommend getting it, along with a subcontractor agreement, before you issue them a payment. Because come January they will be nowhere to be found.
Quickbooks Online has made it super easy to get this information without killing any trees in the process. You can now collect 1099s from your contractors by inviting them to enter the information directly themselves.
What You See
Once you are logged into your Quickbooks Online file, in the left panel click on Workers and then Contractors.
Next Click Add Contractor.
Enter the person’s name and email address. The check the box that says “Email this contractor to complete their profile.”
The Contractor will receive an email asking them to fill out the Form W9. They will simply click the Enter W9 Info button where they will be taken to a Quickbooks Login page where they can create an account.
What They See
On the next screen they will enter their information and digitally sign the form in a secure space. Their info will be saved into their account and automatically sent to your Quickbooks Online file along with a PDF attachment of the form.
The Contractor can log into their account at any time and update their information. If they do this Quickbooks Online till automatically update the information in your file as well.
Back to What You See
When you log back into Quickbooks Online you will see their information and Form W9.