I-9 Form vs. W-9 Form — What's the Difference?
By Tayyaba Rehman & Maham Liaqat — Published on December 15, 2024
I-9 Form verifies an employee's eligibility to work in the U.S., focusing on identity and authorization. W-9 Form is used by freelancers for tax purposes, primarily for providing taxpayer identification numbers to entities that pay them.
Difference Between I-9 Form and W-9 Form
Table of Contents
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Key Differences
The I-9 Form is a mandatory document for employees in the U.S., ensuring they are legally authorized to work, by verifying their identity and employment eligibility. On the other hand, the W-9 Form is used by freelancers and independent contractors to provide their taxpayer identification number (TIN) to the individuals or businesses that pay them, facilitating accurate tax reporting.
Employers are responsible for completing the I-9 Form for each individual they hire, including citizens and noncitizens, which must be done within three days of the start of employment. In contrast, the W-9 Form is provided by freelancers or contractors to their clients to ensure the correct reporting of their income to the IRS, and it's not submitted to the government by the payee.
The I-9 Form requires employees to present documents proving their identity and employment authorization, such as a passport or a combination of a driver's license and social security card. The W-9 Form requires just the individual's or entity's taxpayer identification number, which could be a Social Security Number (SSN) or Employer Identification Number (EIN), and their signature.
The I-9 Form is used strictly for employment verification and has no direct tax implications, whereas the W-9 Form is crucial for tax purposes, particularly for the payers, as it helps in the preparation of 1099-MISC forms, which report the amount of money paid to a freelancer or contractor during the tax year.
The I-9 Form is retained by the employer and must be produced upon request by authorized government officials, whereas the W-9 Form is kept by the individual or entity that makes the payment and is used to complete and issue 1099 forms, which are then submitted to the IRS.
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Comparison Chart
Purpose
Verify employee's eligibility to work in U.S.
Provide taxpayer ID for tax reporting
Users
Employees (citizens and noncitizens)
Freelancers and independent contractors
Required by
Employers
Clients or businesses paying freelancers
Key Information
Identity and employment authorization documents
Taxpayer identification number (TIN)
Tax Implication
None directly, focuses on employment eligibility
Crucial for income reporting and 1099 form preparation
Compare with Definitions
I-9 Form
Applies to both citizens and noncitizens working in the U.S.
Regardless of nationality, every employee needs to fill out an I-9 Form.
W-9 Form
Used by freelancers to provide their taxpayer identification number to clients.
As a freelancer, you'll need to fill out a W-9 Form for each client.
I-9 Form
A document verifying an employee's legal authorization to work in the U.S.
All new hires must complete an I-9 Form within their first three days of employment.
W-9 Form
Contains taxpayer identification number and certification.
Ensure your W-9 Form includes your SSN or EIN and your signature.
I-9 Form
Must be retained by the employer and produced upon official request.
Keep the completed I-9 Forms secure, as they may be audited by government officials.
W-9 Form
Helps prevent tax withholding on payments made to freelancers.
Submitting a W-9 Form means clients won't withhold taxes from your payments.
I-9 Form
Requires presentation of identity and work authorization documents.
You'll need your passport or a combo of your driver's license and SSN card for the I-9 Form.
W-9 Form
Essential for clients to issue 1099-MISC forms for tax reporting.
I need your completed W-9 Form to accurately report what I've paid you this year.
I-9 Form
Not submitted to any government agency unless requested.
We don't send the I-9 Forms anywhere, but we have to have them ready if inspected.
W-9 Form
Not directly submitted to the IRS by the freelancer.
You give your W-9 Form to your clients, not directly to the tax authorities.
Common Curiosities
Do employers submit I-9 Forms to the government?
No, employers retain I-9 Forms and only produce them upon request by authorized government officials.
How does the W-9 Form affect tax reporting?
The W-9 Form provides the information needed by clients to issue 1099 forms, which report the income paid to freelancers or contractors.
How long must employers retain completed I-9 Forms?
Employers must retain I-9 Forms for three years after the date of hire or one year after employment ends, whichever is later.
Who needs to complete an I-9 Form?
Every employee working in the U.S., including citizens and noncitizens, must complete an I-9 Form at the start of their employment.
Is the W-9 Form submitted to the IRS by freelancers?
No, freelancers provide the W-9 Form to their clients, who use it to prepare 1099 forms, which are then submitted to the IRS.
What documents are required for an I-9 Form?
Documents like a U.S. passport or a combination of a driver's license and a Social Security card are typical for the I-9 Form.
What happens if an I-9 Form is not completed?
Failure to complete an I-9 Form can result in penalties for employers, including fines.
Is the W-9 Form required for all types of payments?
The W-9 Form is typically required for payments to independent contractors and freelancers, not for regular employee wages.
What is the penalty for not providing a W-9 Form?
Not providing a W-9 Form can lead to backup withholding, where the payer must withhold taxes from payments.
Do foreign freelancers need to fill out a W-9 Form?
No, foreign freelancers typically use Form W-8BEN instead of a W-9 Form.
Can an I-9 Form be completed before the employee's first day?
Yes, the I-9 Form can be completed as soon as the employee accepts the job offer, but no later than the first day of work for pay.
Can digital copies of I-9 Forms be retained by employers?
Yes, employers can retain digital copies of I-9 Forms, provided they are accessible for inspection.
Can an individual use the same W-9 Form for multiple clients?
Yes, but it's common practice to complete a separate W-9 Form for each client.
Are there any exceptions to who needs to fill out a W-9 Form?
Yes, entities like corporations typically don't need to provide a W-9 Form, except in specific circumstances.
What if an employee's work authorization expires?
Employers must reverify employment eligibility on the I-9 Form for employees whose work authorization has expired.
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Written by
Tayyaba RehmanTayyaba Rehman is a distinguished writer, currently serving as a primary contributor to askdifference.com. As a researcher in semantics and etymology, Tayyaba's passion for the complexity of languages and their distinctions has found a perfect home on the platform. Tayyaba delves into the intricacies of language, distinguishing between commonly confused words and phrases, thereby providing clarity for readers worldwide.
Co-written by
Maham Liaqat
