What Is a Substitute Form W-9?
A substitute Form W-9 is an alternative version of Form W-9 used by payers or requesters to collect the same taxpayer information required for U.S. tax reporting and withholding purposes.
Employees and Independent Contractors
Form W-4 is used only in an employment relationship where an individual is treated as an employee for federal tax purposes. Independent contractors are subject to different tax rules and do not use Form W-4.
Form W-4 vs Form W-9
Form W-4 and Form W-9 serve different purposes within the federal tax system and are used by different categories of workers. The forms are not interchangeable and apply to distinct types of income and tax reporting relationships.
Form W-4 for Nonresident Aliens
Form W-4 is used by nonresident aliens who are treated as employees and receive wages subject to federal income tax withholding. Special federal tax rules apply to nonresident aliens, affecting how withholding information is provided and applied.
Exemption From Withholding on Form W-4
Form W-4 allows certain employees to certify exemption from federal income tax withholding when specific conditions defined by federal tax law are met. Claiming exemption affects whether federal income tax is withheld from wages during the year.
Deductions Reflected on Form W-4
Form W-4 allows employees to reflect certain deductions that affect federal income tax withholding during the year. These deductions are used only to adjust withholding and do not represent the final deductions claimed on an income tax return.
Other Income and Adjustments on Form W-4
Form W-4 allows employees to account for certain types of income and adjustments that are not subject to regular wage withholding. This information affects how federal income tax withholding is applied through the payroll system.
Dependents and Credits on Form W-4
Form W-4 allows employees to reflect certain dependents and tax credits that affect federal income tax withholding. This information is used by employers to adjust withholding calculations during payroll processing.
Form W-4 for Multiple Jobs or Working Spouses
Form W-4 includes provisions for situations in which an employee has more than one job at the same time or is married filing jointly with a spouse who also works. These situations affect how federal income tax withholding is applied across wages from different sources.
Life Changes That Affect Form W-4
Certain changes in an employee’s personal or financial situation can affect how federal income tax withholding is applied, making it necessary to update Form W-4. These changes alter the information used by an employer to apply withholding rules during payroll processing.