Guide
W-9 collection best practices for general contractors
How to collect a W-9 from every sub, store them securely, and export cleanly for 1099-NEC filing. Without the January fire drill.
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The IRS requires general contractors to issue a 1099-NEC to any US contractor paid $600 or more in a tax year. And that requires a valid W-9 on file. Most GCs don\u2019t think about W-9s until December, then spend January chasing subs who have already moved on to their next job. This guide shows how to solve the problem at the source: collect the W-9 before the first check clears.
Collect at onboarding, not at year-end
Make the W-9 a required onboarding document. Same step as the COI. Subs who haven’t uploaded don’t get paid. Problem solved at the source.
Store in encrypted vault
W-9s contain SSNs and EINs. Never store them in Google Drive, Dropbox, or an email inbox. Use encrypted document storage with access controls.
Validate TINs as you collect
Check that legal name, entity type, and TIN are consistent. Missing or mismatched fields trigger IRS backup withholding at 24%.
Export clean for 1099 season
In January, export a CSV with every W-9 on file and payment totals from your accounting system. Import into your 1099 filing tool. Done in an hour.
Frequently asked questions
When do I need a W-9 from a subcontractor?
Before you make the first payment. The IRS requires a W-9 on file for any US contractor you expect to pay $600+ in a tax year. If you don’t have a valid W-9 when you pay, you’re technically required to withhold 24% of the payment (backup withholding).
What if a sub refuses to provide a W-9?
You’re required to withhold 24% of their payments as backup withholding and remit it to the IRS. The easier path: make W-9 submission a condition of payment. Most subs comply immediately when they learn the alternative.
How long do I have to keep W-9s on file?
The IRS recommends keeping W-9s for at least four years after the due date of the tax return on which you reported payments to that contractor.
Can I collect W-9s electronically?
Yes. The IRS permits electronic W-9 collection as long as the electronic signature meets certain requirements. Tools like PaperBoss let subs upload a signed W-9 PDF through a secure link. No paper, no scanning.
Do I need a new W-9 every year?
No. A W-9 is valid until the information changes (legal name, TIN, address, entity type). Best practice is to verify the W-9 is current at the start of each tax year.
Automate W-9 collection. Skip the January chase.
Every day without tracking is a day you’re exposed. One uninsured sub can cost you the whole job.
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