Every employee as well as businessman should know how to prepare and submit tax forms.
There are two of them that are closely connected but with a small difference. Form W-4 or an Employee's Withholding Allowance Certificate allows to withdraw a certain amount of money from a person’s salary to Internal Revenue Service. Form W-9 doesn’t authorize this.
A person should fill out W-4 when starting a new job or in case, his or her financial situation has changed from the last time he prepared this document.
You may also ask for different allowances to decrease the amount of fee.
The employer must forward the quantum on behalf of the worker. It is critically important to keep a track of all the payers.
The results of the procedure should correlate with a W-2 form. It must be sent to the employee at the end of the year. It touches all the fees, salaries and other incomes and deductions.
Besides these two templates, there is a W-9 or Request for Taxpayer
Identification Number and Certification. It is specifically intended for
the identification of the personality to file an information return with
the IRS to report. It should be prepared by a staff member for the company.
Freelance workers usually need to undergo this procedure too and correlate
all the matters with their payer.
At the end of the working year a person in charge must forward a Form 1099 to the individuals paid.
How to simplify the preparation of the certificates?
First of all discuss all the questions with your chef. Ask for additional info if needed contacting the IRS.
Send it to a recipient for further review and approval or denial.