Large-scale digitization has proved advantageous for every sector and industry in today’s day and age. It has impacted the process of manufacturing, distribution, and consumption which has led to a quicker and more efficient experience by everyone involved in the cycle.
Income tax-related formalities have therefore faced a growing need to catch up with the speed of this digital transformation and using electronic and online alternatives to tackle mandatory paperwork has come up pretty quickly in recent years. We will be discussing the prospect of using such an online digital alternative for W9 forms.
Electronically Sign W9
One of the tools we can immediately implement into the process of filling up and e-signing W9 forms are electronic signatures. Electronic signatures are a digital alternative for electronically signing documents and filling them up without the need to physically be present at a particular place. Electronic signatures use digital authentication instead of handwritten signatures to identify the signer and help them adopt an online authentication mark or code that they can use to approve documents.
What Are W9 Forms
W 9 forms are used in the United States Of America and are generally a form that carries the taxpayer identification details about an individual who is usually indulging in freelancing to earn his living. The w9 form is one-half of a two-part process. The W9 form is used to provide the clients of the freelancers with his/her taxpayer identification details so that the party which is making the payment for a particular assignment can document and notify about their transaction to the Income Tax department.
This is necessary as freelancers do not have a steady flow of cash from a particular organization and it can get difficult for the Income-tax department to keep track of the individual’s income. Once the w9 form is submitted, the client can then notify about their payment to the Income Tax Department using the 1099 form which is basically like a receipt of the transaction that took place between both parties.
Fillable W9 Form Online
Anything that is even close to office-related documentation is often found to be tedious and time-consuming by people no matter how important it is. There is nothing we can do about it as it is both a duty and obligation to take care of the W9 forms and we need to go through the entire process of filing them out, signing, and sending them over to the clients whenever we are dealing with a transaction that exceeds 600$. However, there is one thing that can surely be done and that is to make the process easier with electronic signatures and online forms. Let’s see how exactly it can work
Electronic signature platforms provide an online interface where documents can be stored and accessed in pdf format. A W9 form can easily be uploaded into the esignature cloud and can be filled out and signed online. Users can easily type in the details however and whenever they seem convenient to do so. They can proceed to sign and send over the documents to the concerned individuals which can be accessed through the cloud storage by them as well making the process easier on them as well.
Digital W9 Signatures Are Legally Binding
Since W9 forms are directly related to one’s income tax records, people may feel uncomfortable pursuing the digital option as it is not largely marketed as of now. However, they can be assured that electronic signatures are a completely legit alternative for the traditional wet signature as a form of authenticating documents.
E-contracts are a legally binding option with laws like Electronic Signatures in Global and National Commerce Act (ESIGN) by Federal legislation in 2000 in place. E-contracts can be offered as a legally binding contractual agreement between two parties for local as well as global transactions which makes it all the more convenient.
Benefits of Electronic W9 Signatures
For people who like to talk straight on point, we have a feeling you will be interested in this section as we will point out all the ways that adopting an electronic method of signing documents can be of help to you and your business.
While people may be skeptical about using digital means to take care of official work for “safety” reasons, I would like to inform them that esignature is actually a much safer way to go. Paperwork often brings with it a lot of burdens. You have to be careful while handling them, you need to make sure they are not damaged in any way and on top of that you need to personally hand them out to the concerned individuals. Esignatures can greatly reduce your pain in this entire process and even provide you with enhanced security.
The cloud storage that esignature services provide are digitally encrypted and documents cannot be accessed unless you are authorized to do so. The documents are stored online so there is no need to worry about them falling into unwanted hands.
Easier tracking of workflow
In order to be efficient in your pursuit of your goals and want to make sure you are efficient in every aspect of your business, e signature services can come in handy for you in this aspect. It is important to keep track of your work and know what has been done and what is still to be taken care of. E signature services help users keep track of all the documentation. They are updated about the people who have accessed the documents and which documents are still to be accessed and authenticated by clients. It can be a useful tool to stay on top of their work and organize everything better.
Get paid faster
Taking care of W9 forms in a quicker manner can lead to faster payments. The last thing you want to do after working hard on a project is to wait a long time so that formalities are taken care of before making the payment. A faster process will not only free up a lot of time for you to indulge in other important tasks but it will also increase the speed at which you are paid for every project. Both your work and pay will get the much-needed boost after adopting W9 signatures.
Since now you know everything there is to know about digital W9 forms and the convenience eSignatures bring with them, you will be better off pondering on the prospects of making your business more efficient and waste no time to grow exponentially.