W-9 vs 1099: What Each Form Does, and Where W-2 Fits
They travel in opposite directions. The W-9 goes from the sub to you: it’s how you learn their legal name, tax classification and taxpayer identification number. The 1099-NEC goes from you to the sub and the IRS: it reports what you paid them. One is the input, the other the output, and January goes badly when the first one is missing.
A W-9 is a form the sub fills in and gives to you, the payer, with its name, tax classification and TIN. You keep it; it isn't filed. A 1099-NEC is a form you file with the IRS and send to the sub by January 31, reporting nonemployee compensation of $2,000 or more for 2026 payments. You need the W-9 first, because the 1099 is filled in from it. A W-2 is different again: it's for employees, not subs.
In this guide
W-9 vs 1099, side by side
| W-9 | 1099-NEC | |
|---|---|---|
| Full name | Request for Taxpayer Identification Number and Certification | Nonemployee Compensation |
| Who fills it in | The sub | You, the payer |
| Who gets it | You. It never goes to the IRS | The sub and the IRS |
| What's on it | Legal name, business name, tax classification, address, TIN, certification | What you paid the sub in the year, any tax withheld, both TINs |
| When | Before the first payment | By January 31 for the previous year's payments |
| Threshold | None: ask every sub | $2,000 or more paid in the year (for 2026 payments) |
| If it's missing | Backup withholding at 24% on reportable payments | Penalties for late or missing information returns |
The W-9 is also how you decide whether a sub gets a 1099 at all. Payments to a corporation, including an LLC taxed as one, are generally excepted, and the box ticked on line 3a of the W-9 is where you find out. The 1099 threshold for 2026 has the full table.
How they connect over a year
Onboarding
The sub sends you a W-9. You check one box is ticked on line 3a, the TIN has nine digits, and the name matches the number. How to request a W-9.
During the year
You pay invoices. With a TIN on file, nothing is withheld. Without one, backup withholding applies to reportable payments.
December
Every sub you've paid has a W-9 on file. If you're registered, TIN matching checks each name and TIN.
By January 31
You file a 1099-NEC for each sub you paid $2,000 or more, filled in from their W-9, and send them their copy.
Later
If the IRS can't match a name and TIN, a CP2100 arrives and the W-9 is requested again with a B notice.
W-9 vs W-2: sub or employee?
The W-2 belongs to a different relationship. An employee fills in a W-4, you withhold income tax and payroll taxes from every paycheck, and you send them a W-2. A sub, an independent contractor, fills in a W-9, you pay the invoice in full, and they may get a 1099-NEC. Nobody gets both from you for the same work.
Which one a worker is isn’t settled by the form you hand them. The IRS looks at the facts of the relationship: how much you control how the work is done, how much you control the business side (who supplies tools, who can make or lose money on the job), and the relationship itself (contracts, benefits, whether the work is ongoing and core to your business). Some states apply stricter tests of their own.
- A W-9 doesn’t make someone a contractor. A crew member you direct day to day, on your tools, on your schedule, can be an employee whatever paperwork they signed.
- Paperwork that points the other way helps. A sub with its own business entity, a certificate of insurance in its name, a contractor license and other customers looks like what it is.
- When in doubt, ask your accountant before the work starts. Reclassifying someone after the fact means back payroll taxes.
How TrackMyVendor automates this
- The W-9, the certificate of insurance and the license are requested together, through one secure link the sub opens on a phone.
- Each W-9 is read for you: name, tax classification, TIN type and the full TIN, stored encrypted.
- In January, the 1099 sheet has every sub’s details from their newest W-9, and flags anyone without one. Account owners download it.
TrackMyVendor collects and reads W-9s; it doesn’t total payments, prepare 1099s or decide whether a worker is an employee.
Start collecting W-9s freeW-9s at onboarding, 1099s without the scramble
Everything above is a check you can run by hand. This is what it looks like when it runs itself.
On the free plan
- Your first 25 subs, no credit card
- Subs upload certificates, licences and W-9s through a one-time link — no account, no app
- Every certificate read automatically: coverage rows, limits and each policy’s own dates
- Contractor licences checked against the state board’s own records
- A Monday summary of everything expired or expiring
- Each W-9 read for you, and a 1099 sheet that flags anyone without one
Per-deadline alerts at 90, 60, 30 and 7 days, sent to your team and to the sub, start on Starter. Compare plans
Stop checking by hand
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Add your subs — or import the whole list from a spreadsheet on Starter — send each a one-time upload link, and the certificates, licences and W-9s arrive already read. No demo, no sales call, no implementation project.
Start free — no credit card →Up and running in about 10 minutes.
Explore what it does: W-9 collection · Sub onboarding · COI tracking · License verification
Frequently Asked Questions
What is the difference between a W-9 and a 1099?
Do I need a W-9 before I can send a 1099?
Does every sub who fills in a W-9 get a 1099?
What is the difference between a W-9 and a W-2?
Who sends the W-9 to the IRS?
This guide summarizes the IRS’s Form W-9 and 1099-NEC instructions as of November 2026. It isn’t tax or employment advice: worker classification turns on facts, and state rules differ, so ask your accountant or attorney about a specific worker.