Backup Withholding


When you pay someone who is not your employee to perform work for your business, that income is taxable and may be subject to backup withholding.

Backup withholding is tax withheld from payments to workers that were otherwise not subject to withholding (personal service payments).

You may need to pay backup withholding if the worker does not provide a correct Social Security Number (SSN) or other taxpayer identification number (TIN). Learn more about TINs on the IRS website.


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