Every business wants to maintain accurate accounting records and proper documentation. For that, they use QuickBooks Online to manage their accounting and businesses. By using this software, they manage employees’ payroll, vendor or contractor taxes, and many more. To collect important tax information for managing vendor or contractor tax records and for their smooth payment processing, businesses send the QuickBooks W9 form to the vendors and contractors to fill it out. But do you know how to send W9 in QuickBooks Online? If not, then in this blog, we are trying to deliver a detailed answer to this question.
What Do You Mean by W9 Form?
Form W9 is commonly used for businesses, where businesses send these forms through QuickBooks Online or other third-party software to collect the basic taxpayer information to correctly prepare a 1099 form and to make a report on taxable payments of contractors, vendors, and freelancers. This process can happen manually on paper or electronically with third-party software (such as QuickBooks Online, QuickBooks Desktop, etc.). If you are a business owner and hire an independent contractor, then you should ask these contractors to complete the Q9 form.
Why QuickBooks W9 Form Important for Businesses?
The W9 form is very important for businesses because, through this W9 form, business owners can collect proper tax information from independent contractors, vendors, and freelancers. That helps them to accurately complete and submit all required information for tax reporting, prepare a 1099 form, and Internal Revenue Service (IRS) complies with their obligations. QuickBooks Online makes this process simple and easy using its advanced features.
How to Send W9 in QuickBooks Online?
In QuickBooks Online, you can send a W9 form in a simple and easy process. There, the contractor can fill out the W9 form by entering all the details manually or electronically. You just need to follow the following steps to complete the W9 form sending process.
- Open a browser and log in to your QuickBooks Online Account.
- Select a Vendor from the Expense tab.
- Now, choose a particular vendor whom you need to send the W9 form to by clicking on their name.
- Then click on the Print 1099MISC/1096 and W-2/W-3 Forms to choose this option.
- Then, select W-9 from the dropdown menu.
- Now, enter all the required information carefully.
- After entering all the information, click on save and send this form to the respective vendor for their records.
Benefits of Sending W9 in QuickBooks Online
The W9 form in QuickBooks Online helps contractors, vendors, freelancers, and business owners in many ways and provides many benefits. Below, we are showing you some benefits in detail.
- Ensure compliance: By sending a W9 in QuickBooks Online to the individual contractor, a company can perfectly record all the required information in accordance with legal laws and regulations.
- Efficient workflow: This process helps businesses by collecting all the crucial details of the contractors, which provides a tension-free environment and a perfect workflow without wasting much more time and effort.
- Eliminate penalties: when you run your business as per the legal laws with proper guidance and pay all the taxes on time, and maintain a perfect record. The chances of penalties are reduced or eliminated.
- Streamline Form 1099 preparation: By sending a W9 in QuickBooks Online, a business gets all the required information, which helps them to prepare annual tax returns and file Form 1099 report on time and correctly without any mistakes.
- Maintain a professional vendor relationship: By sending a W9 in QuickBooks Online and collecting the information from the contractor’s business, create a report to ensure compliance, and get the proof of all details efficiently with the security of vendor details, and organize business practices to make a strong bond or relationship between the business and vendors.
Conclusion
Sending a W9 form is an important thing in the business, and QuickBooks Online provides these facilities in a simple and efficient process. In this blog, we are trying to provide all the answers to your question, how to send W9 in QuickBooks Online, which provides a legal and penalty-free environment for your business. We hope this article finds you well and helps you to send the W9 form in QuickBooks Online. You just need to follow the process properly.