How To Fill Out W9 for Grubhub

Grubhub is a leading online and mobile food-ordering and delivery marketplace with the largest and most comprehensive network of restaurant partners. If you are a Grubhub delivery partner, it is crucial to understand the process of filling out a W9 form for tax purposes. In this comprehensive guide, we will walk you through the process step-by-step.

Why Do You Need to Fill Out a W9 Form for Grubhub?

A W9 form, known officially as the “Request for Taxpayer Identification Number and Certification,” is used in the United States income tax system by a third party who needs to file an information return with the Internal Revenue Service (IRS). It requests the name, address, and taxpayer identification information of a taxpayer, such as a Social Security Number or Employer Identification Number.

Grubhub, as a Third Party Settlement Organization (TPSO), receives funds from customers and transmits those funds to restaurants. The IRS considers Grubhub a TPSO, and a Form 1099-K is an IRS information return used to report certain payment transactions for voluntary tax compliance. Grubhub needs the information provided on the W9 form to accurately report these transactions and issue the appropriate 1099-K forms to its partner restaurants.

How to Fill Out a W9 Form for Grubhub?

Single Location

1. Log in to your Grubhub For Restaurants account and navigate to Financials > W-9 information.
2. Allow a few moments for the page to load.
3. Click ‘Get started’.
4. Allow a few moments for DropboxSign to load. Complete and then sign the W-9 form.
5. Allow a few minutes for DropboxSign to upload your W-9.
6. Once completed, you will receive a confirmation.

Multi-location (no signed W-9 for any location)

1. Log in to your Grubhub For Restaurants account and navigate to Financials > W-9 information.
2. Allow a few moments for the page to load.
3. Select the locations you want to apply the W-9 to.
4. Click ‘Get started’ which will initialize DropboxSign.
5. Allow a few moments for DropboxSign to load. Complete and then sign the W-9 form.
6. Allow a few minutes for DropboxSign to upload your W-9s.
7. Once all locations have a W-9 attached, you will receive a confirmation.

Multi-location (new locations added)

1. Log in to your Grubhub For Restaurants account and navigate to Financials > W-9 information.
2. Once the page loads, you will be prompted to either add an existing W-9, or upload a new W-9 for the new location.
3. If you select ‘Add an existing W-9’, you can select a W-9 you have previously uploaded and select the locations you would like to apply it to. This will only show locations that do not have a W-9 already.
4. Once you have completed your selections, click ‘Submit’.
5. Allow a few moments for the system to process the request.
6. If all locations have a W-9, you will receive a confirmation.

What Information is Needed to Complete a W9 Form?

To complete a W-9 form, you will need to provide the following information:

1. Your full legal name
2. Your business name (if applicable)
3. Your business entity type (e.g., individual, partnership, corporation, etc.)
4. Your exempt status (if applicable)
5. Your current address
6. Your Taxpayer Identification Number (TIN), which could be your Social Security Number (SSN) if you are an individual, or your Employer Identification Number (EIN) if you are a business.
7. Your signature to certify that the information provided is correct.

Potential Penalties for Incorrectly Filling Out a W9 Form

Filling out a W9 form incorrectly can lead to several penalties. If a taxpayer fails to provide a correct tax number, they may be subject to a $50 fine for every instance of non-compliance. If a taxpayer provides incorrect information that leads to incorrect withholding, they can be subject to civil penalties. For example, if a taxpayer makes a false statement that results in no backup withholding, they may be subject to a penalty of up to $500.

Tips for Filling Out a W9 Form Correctly

Here are some tips to ensure the W9 form is filled out correctly:

1. Enter your full legal name as shown on your tax return.
2. If you have a business name different from your personal name, make sure to include it.
3. Provide the correct Taxpayer Identification Number (TIN).
4. Check the correct box in the tax classification section.
5. Address backup withholding if it applies to you.
6. Sign the form. An unsigned form is invalid.
7. Use a secure method to submit the form.

Remember, the W-9 form is used to provide the correct Taxpayer Identification Number (TIN) to the person who is required to file an information return with the IRS. Therefore, it’s crucial to ensure all the information provided is accurate and up-to-date.

Where to Get Professional Help?

If you need professional help filling out a W9 form, consider seeking advice from a certified public accountant (CPA), tax professional, or free tax assistance programs such as the Volunteer Income Tax Assistance (VITA) program or the Tax Counseling for the Elderly (TCE) program.

In conclusion, filling out a W9 form for Grubhub is a simple but important process. By following the steps outlined in this guide and providing accurate information, you can ensure that your tax obligations are met and avoid any potential issues with the IRS.