Posted by lisaca on 12/29/05 4:05pm
Msg #85099

backup withholding exemption

Are SA exempt from backup withholding tax? I've read some things about this but I'm still not clear. TIA

Reply by Anonymous on 12/29/05 4:47pm
Msg #85107

If you do not provide your tax ID number to the person or firm paying you, you would be subject to backup witholding at a rate of 28%.

Reply by lisaca on 12/29/05 6:42pm
Msg #85126

So then, when I'm filling out the W-9 and giving my SSN I should mark the Exempt box. Correct?

Reply by JD_inMD on 12/29/05 6:48pm
Msg #85127

Leave the exempt box alone. Unless you are a organization exempt from tax, a government, or a corporation.

Reply by lisaca on 12/29/05 7:06pm
Msg #85132

Thank you N/M

Reply by Roger_OH on 12/29/05 8:01pm
Msg #85152

Lisa, please note! Don't give out your SSN!

Strongly recommend that you do NOT give your SSN out to signing companies. Use an EIN instead, which you can obtain from the IRS website in just a few minutes. You do not have to be an employer, or incorporated, just a sole proprietor. Use the EIN for all your notary business dealings as well as filing your Schedule C form for your business with your taxes. You will find most of the experienced people here already do this.

Reply by lisaca on 12/29/05 8:43pm
Msg #85171

Re: Lisa, please note! Don't give out your SSN!

Well, it's too late but thanks for the info for the future. I thought you had to be DBA to get a EIN. I'll definitely apply for one now that I know I can. I wasn't too thrilled about giving out my SSN. Thanks again.

Reply by Roger_OH on 12/29/05 8:51pm
Msg #85174

Re: Lisa, please note! Don't give out your SSN!

When you get your EIN, just send a new W-9 with it to whatever companies you've given your SSN to.

Reply by lisaca on 12/29/05 10:00pm
Msg #85191

Re: Lisa, please note! Don't give out your SSN!

That's a good idea.