I have a two part question.
1. We are going to hire someone on a commission only basis. I will be giving them a W-9 form to fill out. Do they enter their SSN or EIN? If I am understanding correctly, they would give me their SSN.
2. Our company would also fill out the W-9 form if we were doing any contract work, right? In this case we would fill in the EIN?
Thanks
1. Did you hire this person as an Independent Contractor or as an W’2 employee? If as an Independent Contractor they can give you a EIN number if they have their own business. If not, then SS number.
2. I would check the IRS website and read up about who is and who isn’t an Independent Contractor. You don’t want to get into trouble with the IRS. Just because you hire someone on a commission only basis doesn’t make them a Independent Contractor.
Your answer for Question 2 is right on. You should give them your EIN number.
1. They can enter either an EIN if they have one or their social if they do not have an EIN.
2. Yes and yes.
