A Form W-9 is a document that is issued by the United States Internal Revenue Service (IRS) for certain taxation purposes. While W-9’s aren’t filed with the IRS, so they should be collected by those clients or companies that hire independent contractors, or freelancers. Also for earnings received by financial institutions W-9’s are used.
A W-9 is used to collect the necessary information about the independent contractor. The form requires to fill the information as to the freelancer’s name, address, and social security or tax payer identification number.
Required to produce Form 1099
The client or company in order to produce a Form 1099 will use the information that is collected on the W-9, or substitute W-9. The form contains the details of the earnings that the independent contractor received from that client that tax year. The Form 1099 is then sent to both the independent contractor and the IRS; it is the requirement of some states that the form 1099 has to be mailed separately.
Form 1040-ES is used to submit quarterly tax payments
The W-9 does not withhold taxes or social security payments, unlike the Form W-4, which is used by the employees in order to authorize an automatic tax withholding from their paychecks. For the full amount of taxes assessed to earned income, independent contractors are solely liable . 
Therefore, typically independent contractors are needed to submit quarterly estimated tax payments to the IRS and as well as their state tax board. In order to submit such quarterly tax payments to the federal government the Form 1040-ES is used.
For whom W-9 is required
The W-9 is only required for the independent contractors who are US citizens, US resident aliens, and some other less common categories (e.g., a domestic estate). Those contractors who are Non-US independent instead of filling out a W-9 may be required to fill out a Form W-8 (like the Form W-8BEN). This is not always the case. Investors, or freelancers, who dwell in other countries may simply file the W-9, as this will provide the employers or financial institution with a way to keep record of their information.
Requirement of Signature
A signature is also required for the W-9, although there is no need to have the signature witnessed by an employer or client as what is required for W-4 form. In most of the cases, freelancers merely send in a W-9, and that can also be a copy of the original.
Most employers must have a record of a W-9 form only if the money they will pay to a freelancer exceeds 600 US dollars (USD) yearly. For lesser amounts there is no need to fill out the form.
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