W-9 vs 1099 Taxes – not a fun topic I know. There are so many rules, guidelines and forms, which is enough to make your head spin.
It is no different in the healthcare industry. Each provider and facility are required to complete special forms and file their taxes with … bomp bomp bom…the IRS
The two main forms providers, and facilities need to pay extra attention to is form W-9 and 1099’s. I know, you are probably wondering, what is the difference and how can I get this done and over with as quickly and painlessly as possible. So, without further ado…
The W-9 is the document that is issued by the US Department of Treasury and is required to be completed by the person, or company, to request the Taxpayer Identification Number or more commonly known, the TIN. The W-9 is usually completed prior to the start of service. This form must be completed and returned to the requesting person or company, which uses the information for tax filing purposes. It is important that those completing the form use the information that is on file with the IRS. This information includes the providers name, business name, address, social security number and/or employer identification number.
The 1099 is the tax form used to report incomes, other than wages. These incomes can include non-employee income, fees, commissions, rent or royalties. The payer is required to report incomes they have paid more than $600 per tax id in a calendar year to the government.
For TPAs, PPOs, Health Plans, or anyone who pays claims/bills, it is crucial that this information be up to date and filed correctly. If information is incorrect or not filed properly, then they are at risk of receiving fines from the IRS.
W-9 Corrections, the complete 1099 outsourcing solution, was designed to help with this process. Since facilities have multiple providers working under the same tax id, things can get a little messy and confusing. With W-9 Correction’s technology and amazing customer service staff, we have never had a client receive a fine from the IRS.
If you need assistance with your W-9s and 1099s this year and want to avoid head aches and potential fines from the IRS, contact W-9 Corrections today by calling us at 704-424-9889 or sending an email to firstname.lastname@example.org!