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even if you're working with independent contractors and you're filing form 1099 at the end of the year like you're supposed to it's possible that you'll need to withhold on the compensation that you're paying to them if you're paying rents non employee compensation for services royalties or any other amount as reported on form 1099 miscellaneous for miscellaneous income generally you'll need to get the pays taxpayer identification number either when the payee opens an account or when the transaction occurs to do this you deliver form w-9 which is a request for a taxpayer identification number to the payee if the payee does not give you a taxpayer identification number or gives you a taxpayer identification number that is obviously incorrect and you'll know it's incorrect because it does not have exactly nine digits or any of the nine digits is not a number if they do give you a bad number begin backup withholding immediately and at least once a year request a correct taxpayer identific

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