Important Reminders For Payers' Backup Withholding Responsibilities

Payers must make sure they meet their withholding responsibilities on payments made to payees who have not provided them with a proper Taxpayer Identification Number. Businesses often make payments to both employees and non-employees (independent contractors). When making payments to non-employees, the Internal Revenue Code generally requires the businesses to report these payments to the Internal Revenue Service. These payments are called “reportable payments” if the payments equal $600 or more during the calendar year...........

Internal Revenue Service