Independent Contractor Tax Guideline

What is a W-9 Form and why is it needed?

Per IRS regulation, Holy Family University is required to have a completed Form W-9 on file for any individual or non-incorporated business entity that receives compensation for services (non-payroll) from the University. The Form W-9 requires the Tax ID#, address and signature of the individual. Any individual or business entity that receives a cumulative amount of $600 or greater in the calendar year will receive a Form 1099 from the University reporting this as income to the individual. A copy of this form is also sent to the IRS.

Departments planning to do business with a business entity or individual for the first time must present a completed W-9 form to the Business Office before payment will be issued.

NOTE: City wage tax may be imposed on recipients of 1099 earnings. The Philadelphia wage tax is part of the Net Profits Tax Legislation/Law. City wage tax is imposed on the compensation of Philadelphia residents and the Philadelphia-earned compensation of nonresidents. For additional information visit http://www.phila.gov/revenue/.