Accounts Payable...Exempt vs Non-Exempt....IRS W-9 Form?

Question

I work in accounts payable and have taken on the duty of mainatining and sending out W-9 to the vendors....

Question: When is a vendor exempt or non-exempt as far as having our company having to send them a W-9 to complete

Answer 1

If you expect to pay over $600 for the year, then they need to provide you with a W-9 unless they are a corporation - corporations don't get a 1099 and you don't need to have a W-9 on file.

Answer 2

Let me break it down for you:

W-9's are for collecting taxpayer ID's (people or companies) for those that will receive 1099's at the end of the year.

Those entities are for anything your company pays them for 1) wages paid to a non-employee less any expenses you're reimbursing them for; 2) rents; and 3) fees paid to an attorney.

You do not issue these for goods you've purchased, food, services like drycleaning or catering, etc.