W-9 Form and How to Sign Electronically

For many businesses, hiring independent contractors can be more cost-effective and flexible than bringing on full-time employees. It can be a practical choice for short-term or seasonal projects, or when outside expertise and skillsets are needed.

When businesses pay these contractors $600 or more in a calendar year, they must report that compensation to the IRS on Form 1099-NEC. To prepare that form, businesses typically request a completed W-9 form so they can obtain the contractor’s correct taxpayer identification number. The IRS permits electronic signatures on Form W-9 as long as the signature process meets its identity-verification and recordkeeping requirements. 

In this article, we’ll explain what a W-9 tax form is, who’s required to complete it, how to securely execute a W-9 form electronic signature, and how Docusign can streamline the process.

Key takeaways

• Businesses use the W-9 form to securely collect required tax information from independent contractors.

• The IRS accepts electronic signatures on the W-9 form as long as the electronic system meets IRS identity-verification and recordkeeping requirements.

• Digitizing tax document workflows with tools like Docusign reduces manual errors, saves administrative time, and helps protect sensitive payee information.

What is a W-9 Form? Understanding the W-9 Form's purpose and utility

Form W-9, officially titled Request for Taxpayer Identification Number and Certification, opens in a new tab is an IRS form used by businesses to collect a person’s legal name, address, taxpayer identification number (TIN), and certain tax certifications.

Specifically, businesses typically request a W-9 form from independent contractors, freelancers, and other non-employees to obtain the information required to issue Form 1099-NEC when $600 or more in non-employee compensation is paid during the year. By submitting a completed W-9, a contractor is providing the company with the information it needs to properly make payments to the IRS. 

Who is required to fill out a W-9 tax form?

Businesses typically request W-9 forms from independent contractors, consultants, freelancers, and other non-employees.

Beyond self-employed contractors, W-9s might also be requested in other situations where a payer must report certain types of payments or transactions to the IRS. Examples include opens in a new tab real estate transactions, mortgage interest, brokered stock sales, canceled debt, or IRA contributions.

Full-time employees do not complete Form W-9; they complete a W-4 form opens in a new tab, which is used to determine federal income tax withholding.

What does a W-9 form look like? The IRS W9 sample

The IRS publishes the official Form W-9 opens in a new tab on its website, and the most recent PDF version includes all required fields and instructions. Reviewing the current W-9 form is an excellent way to understand its purpose, how each section should be completed, and exactly what you are certifying when you submit it. Electronic versions provided through secure platforms may look slightly different in layout, but they must contain the same required information as the IRS form.

How to fill out a W-9 tax form

Step-by-step instructions for filling out a W-9 are included on the form itself. The form is one of the more straightforward tax forms to fill out. Contractors provide basic information, such as their legal name, business name (if applicable), and address, as well as their Social Security number or taxpayer identification number. They must also indicate their federal tax classification, such as a C corporation, S corporation, LLC, partnership, or individual/sole proprietor.

Certain entities may be eligible to claim exemptions from backup withholding. In most cases, the form must be signed and dated to certify that the information provided is accurate.

Can a Form W-9 be signed electronically?

Yes, under IRS Announcement 98-27, Form W-9 may be completed, signed, and submitted electronically. The IRS recognizes electronic signatures as long as the electronic system reliably identifies the person submitting the form, preserves the information exactly as submitted, and allows the payer to produce a hard copy of the W-9 form for the IRS upon request.

Electronic signature platforms such as Docusign are designed to meet these requirements, making electronically signed W-9 forms valid and legally binding.

There are several advantages to digitizing your paperwork and utilizing a W-9 form electronic signature, including:

• Time saving: Digital templates allow contractors to complete the form quickly, and HR or accounting teams can store and manage submissions more efficiently.

• Reduced errors: Electronic forms help ensure the required fields are completed correctly and consistently. 

• Easier signing process: Required-field tagging guides the signer so nothing is missed. 

• Protecting sensitive information: Docusign uses authentication and encryption measures to help safeguard the information provided on the W-9 form.

By digitizing the process, businesses can avoid delays in collecting wet signatures and eliminate issues caused by illegible handwriting or incomplete forms.

Ready to get started? Here's our W-9 template.

W-9 Form Electronic Signature: Frequently Asked Questions

Managing tax documentation often raises specific questions about compliance and processes. To help you streamline your workflow, we’ve answered the most common questions regarding electronic W-9 forms.

Where are you supposed to sign a W-9?

On the standard IRS W-9 form, the signature line appears in Part II at the bottom of the first page, under the "Certification" heading. By signing, you certify that the taxpayer identification number you provided is correct and that you are not subject to backup withholding, unless otherwise indicated. Make sure the form is signed and dated before returning it to the requester.

Can a W-9 be signed with Docusign?

Yes, you can use Docusign to execute a W-9 form electronic signature. Docusign is designed to support compliance with IRS guidelines for electronic tax forms, as well as broader standards like the ESIGN Act and UETA. When you capture a signature through Docusign, it generates a secure audit trail that helps simplify your organization's compliance workflows.

How do I add a signature to a W-9 form?

To add an electronic signature to a W-9 form, first upload the W-9 sample or your pre-filled PDF into a digital transaction management platform like Docusign. Next, drag and drop the signature and date fields into the designated spaces in Part II. Finally, route the document to the contractor for their signature. 

Using a pre-built template can help automate this process and allow a team to collect signed forms with a single click.

What are common W-9 mistakes to avoid?

The most common W-9 mistakes to avoid include missing signatures, incorrect identification numbers, listing the wrong business name, and skipping the tax classification. When reviewing collected forms, watch out for these specific oversights:

• Missing signatures: A W-9 is invalid without a completed signature and date.

• Incorrect identification numbers: Ensure the Social Security number or employer identification number matches the legal name provided exactly.

• Wrong business names: Contractors often mistakenly list their "doing business as" (DBA) name instead of their legal entity name in the primary name box.

• Skipping the tax classification: Form fillers must check the appropriate box (e.g., Individual, LLC, C corporation) to indicate their entity type.

Utilizing an automated agreement solution helps you avoid these issues by making essential fields mandatory before the document can be submitted.