If your not-for-profit is shorthanded, you may decide to engage independent contractors to pick up some of the slack. Just make sure you’re collecting the right information. Organizations need a completed Form W-9 for every nonemployee they pay for services. Obtain this information before you pay contractors’ invoices. If a contractor doesn’t provide you with a Tax Identification Number or the number is wrong, the IRS may require you to “backup withhold” a portion of payments. Regularly review your W-9s on file for accuracy so they’ll be ready to use when you issue Form 1099-NECs at the end of the year.
