If you are contracted to do work for a business with a tax ID, do you have them complete a tax exempt form, or just make a note of their ID #? Also, if you're doing work for an individual who is non-exempt, are you charging them tax for services?

Thanks!

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Liz
InterCom Virtual Assistant Services

Hi Liz, I don't charge tax on services and never have (and all of my clients have a tax ID, as do I) - if you live in a state where taxes are required to be collected on services I would recommend checking in with your secretary of state by phone, or browse their website for more information.

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Liz, I'm not sure about all states but generally there is no sales tax on services. Your client may however, request for you (as the contractor) to complete a W-9 which is a Request for Taxpayer Identification Number and Certification. If they pay you for services over $600/year they will issue you a 1099 at the end of the year that will be used for Federal Tax purposes.

Same goes if you contract work out to another contractor, then you would request a W-9 and issue 1099's at the end of the year. You can go to the IRS website for more information on who gets a 1099.

I hope this helps.

Thanks much. I actually did check with the secretary of state, and I DO have to charge tax unless they have a tax ID.

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Liz
InterCom Virtual Assistant Services

Ouch! I have to say I'm grateful not to have to deal with that headache... Just out of curiosity, what state are you in?

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