Understanding 1099 and W-9 Forms
When working with contractors or freelancers, you’ll commonly encounter W-9 and 1099 forms. These forms are essential for tax reporting and compliance in the United States, helping ensure that payments are properly documented and reported to the IRS.
What Is a W-9 Form?
A W-9 form is completed by your contractor or freelancer and provides their taxpayer information, including:
Legal name
Business name (if applicable)
Address
Taxpayer Identification Number (TIN), such as an SSN or EIN
You don’t submit the W-9 to the IRS. Instead, you keep it on file and use the information provided to prepare a 1099 form at the end of the year.
💡 Think of it this way:
The W-9 collects the information, and the 1099 reports the payments.
What Are the Most Common Types of 1099 Forms?
There are several types of 1099 forms, but the two most commonly used on platforms like Maroo are:
1099-NEC (Non-Employee Compensation)
This form is used to report payments made to independent contractors or freelancers for services.
Typically required when total payments reach $600 or more in a year
Covers services such as photography, design, planning, and other contract work
Filed by businesses that directly pay contractors
1099-K (Payment Card and Third-Party Transactions)
This form is used to report payments processed through third-party payment platforms like Stripe.
Reports the gross amount of payments received (before fees or expenses)
Issued by the payment processor—not by you as the business
Thresholds and requirements may vary based on IRS regulations
💡 Key difference:
1099-NEC = Payments you send directly to contractors
1099-K = Payments processed through third-party platforms
What Does “Send to IRS” Mean?
When you see the option “Send to IRS”, it means the platform can electronically file the 1099 form on your behalf once all required information is complete and verified.
After you select this option:
The form is submitted directly to the IRS
The filing is considered official and complete
The contractor will automatically receive their copy of the 1099
No additional mailing or manual steps are required from you
Important Things to Keep in Mind
Make sure all W-9 information is accurate before filing
Double-check payment amounts and contractor details
Once submitted, the filing is finalized, and changes may require corrections or amendments
⚠️ Note: “Send to IRS” is a final step—be sure everything is correct before proceeding.
Key Takeaways
A W-9 collects contractor tax information
A 1099 reports how much you paid them
1099-NEC is for direct contractor payments
1099-K is for payments processed through third-party platforms
“Send to IRS” means the form is officially filed electronically
Need Help?
If you have any questions or would like guidance, our team is happy to help. You can reach us at [email protected], and we’d be glad to hop on a quick call with you.