In a tight labor market, employers may seek to fill the gaps by turning to independent contractors. If this is your plan, and you expect to pay the contractor at least $600, be sure to collect a completed Form W-9 (Request for Taxpayer Identification Number and Certification). The W-9 is necessary to ensure correct identification of the individual so you can report the payment to the IRS. If the contractor fails to provide you with a completed W-9, you must withhold 24% of future payments and remit it to the IRS. If you fail to comply, it may result in liability for the payment. To avoid the issue, the best practice is to collect this form upfront. Contact the Cg Team for help. © 2025