Giving out Ssn and address to a company?

Question

Recently I've worked with a friend setting up convention booths and got paid, after about 3 weeks after he ask me about my ssn and address for tax reason, it it alright to give it to him?.

The company he works for deals with conventions and etc..

Answer 1

They SHOULD have gotten your name, address, and SSN before they ever paid you.  You are required BY LAW to give it to them if you were paid for your services.  If you fail or refuse to do so, they are required by law to withhold 28% for tax and pay that to the IRS.  If you've already been paid in full, they will likely increase the amount paid to cover the tax that they must pay.

Answer 2

Volunteering at conventions or special events doesn't usually require you to give out your SSN.

You usually only need to hand over your SSN if you are on the company's tab and they need to pay you with checks/direct deposit.

The SSN and address is legit in the latter case for reasons such as a background check and for tax reasons.

Answer 3

They should have really requested a W-9 form from you so they would have the necessary info from you (SS#) to report the 1099 income.  If you do not provide that info when requested, they are required to withhold an amount from any payments towards taxes.

Answer 4

If you are receiving a check from this company, they have to have your social security number so that the income they report as payroll matches with income given to people.  A company can't claim payroll as a deduction on tax if they have no proof they had employees.  They have to file a copy of your w-2 with the government so it can be matched with your tax returns.  If a company turns in your income to them (the IRS) and you don't have a w-2 to file your return with, which you won't get one if you don't give them your social security number, then when you file your taxes they (the IRS) will include the amount of income from this organization and will deduct it from your tax return or send you a letter telling you you owe taxes on a w-2 that was not included in your return.  If you work for this company and make less than $600 then you can have them send you a 1099.  But they still need your social security number to include on this.  The government knows about any money you make with a company if they are claiming it as a payroll tax deduction.  You can work as contract labor but those guidelines are getting harder to keep.  Companies don't like to do that if they can help it.  If they do and you make over $600.00 they still have to send you a 1099.  Contract labor is mostly for the self-employed.

Answer 5

If you are getting paid, they need your SSN so they can issue you either a 1099 or W-2.  Its likely they will issue a 1099 unless they have you fill out a W-4.