4 Ws You Need to Know

The letter of today is…W! [Cue Sesame Street music.]

“The difference between death and taxes is death doesn’t get worse every time Congress meets.” ~ Will Rogers

It’s that special time of year fondly (cough, cough) known as tax season. As you prepare your year-end books with your bookkeeper and accountant, here are a few important Ws to be aware of:

  • W-2

A form created for employees which documents their wages and deductions. Due to your employees by January 31.

  • W-4

A form completed by employees upon being hired or if their status and/or withholding needs change. This form provides key information to the employer so that withheld taxes are appropriate.

  • W-7

A form for new or renewing individual taxpayers for whom having a social security number is not an option. This form results in an individual taxpayer ID (ITIN).

  • W-9

A form that is required for freelance or contract individuals, sole proprietors, and LLCs to whom the company paid $600 more in fees. The best practice is to obtain the form upon contract signing from each freelancer or contractors with whom you do work so you don’t have to scramble at year-end. From the information provided, it’s possible that a 1099 would be generated. 1099s must be mailed to contractors and freelancers by January 31.

If you have any questions about these forms or how to complete them, please contact me.

Until then, don’t tax yourself in getting all your filing done!