Are You Subject to Backup Withholding?
If your business is looking to do business with the State of Florida, make sure to have your Substitute Form W-9 filled out. You can fill it out electronically with the link below.
The Substitute Form W-9 allows the State of Florida pays your business for services rendered to the state. The State will issue your business Form 1099 at the end of the year. It is your responsibility to claim this income on your business tax return as the State of Florida will also report the income on Form 1099 to the IRS.
Are you Subject to Backup Withholding? Part 3 of the Substitute Form W-9 asks if you are subject to back up withholding. Certain Payments made to you can be subject to back up withholding that need to be paid to the IRS. These payments include Interest, tax-exempt interest, dividends, broker and barter exchange transactions, rents, royalties, nonemployee pay, and certain payments from fishing boat operators. Please remember, real estate transactions are not subject to back up withholding. If none of these apply to you, please mark the option “I am not – subject to backup withholding.
Link to form Substitute W-9 is below: