What tax forms do contractors need?

For US companies hiring independent contractors below are the relevant forms.

  • Form W-9 (Request for Taxpayer Identification Number and Certification)

  • Form W-8BEN (Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting)

  • Form W-8BEN-E (Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting)

The citizenship or tax status of the independent contractor, determines which form should be collected. See table below:

 
  US contractors
(US citizen or tax resident)

International contractors - individuals
(Non US citizen or tax residents)

International contractors - entities
(Non US entities or tax entities)

US company - once at the beginning of the engagement Form W-9 Form W-8BEN
US company - issued yearly Form 1099-NEC    
 
 

Oyster will help you collect and store the right form for the right contractor. Oyster will determine which is the right form to collect, help the contractor complete the form through the Oyster platform and store the forms on the team page.

Here are two other relevant help pages:

In addition, US companies may need to issue a Form 1099-NEC (Non-employee Compensation). We will provide this functionality for the tax year 2021 at the beginning of 2022.

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