Loyola University Chicago

Financial Services

Electronic W9/W8 Form Instructions

Accounts Payable is pleased to announce a new Electronic W9/W8 form. Loyola will be asking all new (or inactive) vendors and payees to complete a Electronic W9/W8 Form via our new web form portal beginning October 15, 2019.  Some of the enhancements of this new form are:
 
  • Acceptance of electronic signature
  • LUC Faculty & Staff are able to send a unique link to vendors to complete the form
  • The LUC contact receives an email once the vendor submits the form to AP
  • Secure submission of sensitive information
  • Automatic integration into DocFinity
  • No longer need to submit W-9’s via secure transfer to Accounts Payable
  • Enhanced ability to track expiration dates & proactively work with vendors for recertification
This comprehensive web form provides all of the common elements of the basic IRS Form W-9 while also providing important demographic information for each vendor or payee. This new form will replace the standard issue IRS W-9 form, as well as the previously available “Vendor Information and Substitute W-9 Form”. 
 
All information collected via our new web form will be securely stored and will not be shared with any entity outside of the source department unless required by law. We recommend that you save a link to the web form on the browser of your choice.  Vendors will be able to login to our new system directly and securely transmit their information to us via the online form. Anytime there is a change to a vendor’s address or banking information, they should complete a new Electronic W9/W8 form.
 
If you have any questions about the new web form, please send an email to Accounts-Payables@luc.edu.

An individual or entity (Form W-9 requester) who is required to file an information return with the IRS must obtain your correct taxpayer identification number (TIN) which may be your social security number (SSN), individual taxpayer identification number (ITIN), adoption taxpayer identification number (ATIN), or employer identification number (EIN), to report on an information return the amount paid to you, or other amount reportable on an information return.

If you do not return Form W-9 to the requester with a TIN, you might be subject to backup withholding. See What is backup withholding? below.

By electronically signing and submitting the Electronic W9/W8 Form, you:

  1. Certify that the TIN you are giving is correct (or you are waiting for a number to be issued),
  2. Certify that you are not subject to backup withholding, or
  3. Claim exemption from backup withholding if you are a U.S. exempt payee. If applicable, you are also certifying that as a U.S. person, your allocable share of any partnership income from a U.S. trade or business is not subject to the withholding tax on foreign partners' share of effectively connected income, and
  4. Certify that FATCA code(s) entered on this form (if any) indicating that you are exempt from the FATCA reporting, is correct. See What is FATCA reporting? for further information.

Definition of a U.S. person: For federal tax purposes, you are considered a U.S. person if you are:

  • An individual who is a U.S. citizen or U.S. resident alien;
  • A partnership, corporation, company, or association created or organized in the United States or under the laws of the United States;
  • An estate (other than a foreign estate); or
  • A domestic trust (as defined in Regulations section 301.7701-7).

Special rules for partnerships: Partnerships that conduct a trade or business in the United States are generally required to pay a withholding tax under section 1446 on any foreign partners’ share of effectively connected taxable income from such business. Further, in certain cases where a Form W-9 has not been received, the rules under section 1446 require a partnership to presume that a partner is a foreign person, and pay the section 1446 withholding tax. Therefore, if you are a U.S. person that is a partner in a partnership conducting a trade or business in the United States, provide Form W-9 to the partnership to establish your U.S. status and avoid section 1446 withholding on your share of partnership income.

In the cases below, the following person must give Form W-9 to the partnership for purposes of establishing its U.S. status and avoiding withholding on its allocable share of net income from the partnership conducting a trade or business in the United States:

  • In the case of a disregarded entity with a U.S. owner, the U.S. owner of the disregarded entity and not the entity;
  • In the case of a grantor trust with a U.S. grantor or other U.S. owner, generally, the U.S. grantor or other U.S. owner of the grantor trust and not the trust;
  • In the case of a U.S. trust (other than a grantor trust), the U.S. trust (other than a grantor trust) and not the beneficiaries of the trust.

Foreign person: If you are a foreign person or the U.S. branch of a foreign bank that has elected to be treated as a U.S. person, please upload the appropriate Form W-8 or Form 8233 (see Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities).

Nonresident alien who becomes a resident alien: Generally, only a nonresident alien individual may use the terms of a tax treaty to reduce or eliminate U.S. tax on certain types of income. However, most tax treaties contain a provision known as a “saving clause.” Exceptions specified in the saving clause may permit an exemption from tax to continue for certain types of income even after the payee has otherwise become a U.S. resident alien for tax purposes.

If you are a U.S. resident alien who is relying on an exception contained in the saving clause of a tax treaty to claim an exemption from U.S. tax on certain types of income, you must attach a statement to Form W-9 that specifies the following five items:

  1. The treaty country. Generally, this must be the same treaty under which you claimed exemption from tax as a nonresident alien.
  2. The treaty article addressing the income.
  3. The article number (or location) in the tax treaty that contains the saving clause and its exceptions.
  4. The type and amount of income that qualifies for the exemption from tax.
  5. Sufficient facts to justify the exemption from tax under the terms of the treaty article.

Backup Withholding: Persons making certain payments to you must under certain conditions withhold and pay to the IRS 24% of such payments. This is called “backup withholding.”  Payments that may be subject to backup withholding include interest, tax-exempt interest, dividends, broker and barter exchange transactions, rents, royalties, nonemployee pay, payments made in settlement of payment card and third party network transactions, and certain payments from fishing boat operators. Real estate transactions are not subject to backup withholding.

You will not be subject to backup withholding on payments you receive if you give the requester your correct TIN, make the proper certifications, and report all your taxable interest and dividends on your tax return.  Payments you receive will be subject to backup withholding if:

  1. You do not furnish your TIN to the requester,
  2. You do not certify your TIN when required (see the Form Certification section for details),
  3. The IRS tells the requester that you furnished an incorrect TIN,
  4. The IRS tells you that you are subject to backup withholding because you did not report all your interest and dividends on your tax return (for reportable interest and dividends only), or
  5. You do not certify to the requester that you are not subject to backup withholding under 4 above (for reportable interest and dividend accounts opened after 1983 only).

What is FATCA reporting?

The Foreign Account Tax Compliance Act (FATCA) requires a participating foreign financial institution to report all United States account holders that are specified United States persons. Certain payees are exempt from FATCA reporting.

Updating Your Information

You must provide updated information to any person to whom you claimed to be an exempt payee if you are no longer an exempt payee and anticipate receiving reportable payments in the future from this person. For example, you may need to provide updated information if you are a C corporation that elects to be an S corporation, or if you no longer are tax exempt. In addition, you must furnish a new Form W-9 if the name or TIN changes for the account; for example, if the grantor of a grantor trust dies.

Penalties

  • Failure to furnish TIN: If you fail to furnish your correct TIN to a requester, you are subject to a penalty of $50 for each such failure unless your failure is due to reasonable cause and not to willful neglect.
  • Civil penalty for false information with respect to withholding: If you make a false statement with no reasonable basis that results in no backup withholding, you are subject to a $500 penalty.
  • Criminal penalty for falsifying information: Willfully falsifying certifications or affirmations may subject you to criminal penalties including fines and/or imprisonment.
  • Misuse of TINs: If the requester discloses or uses TINs in violation of federal law, the requester may be subject to civil and criminal penalties.

NAME

You must enter one of the following on this line; do not leave this line blank. The name should match the name on your tax return.

If this Electronic W9/W8 Form is for a joint account, list first, the name of the person or entity whose number you entered in the Tax Payer Identification Number on the Electronic W9/W8 Form.

  • Individual. Generally, enter the name shown on your tax return. If you have changed your last name without informing the Social Security Administration (SSA) of the name change, enter your first name, the last name as shown on your social security card, and your new last name.
    Note: ITIN applicant: Enter your individual name as it was entered on your Form W-7 application, line 1a. This should also be the same as the name you entered on the Form 1040/1040A/1040EZ you filed with your application.
  • Sole proprietor or single-member LLC. Enter your individual name as shown on your1040/1040A/1040EZ on line 1. You may enter your business, trade, or “doing business as” (DBA) name on line 2.
  • Partnership, LLC that is not a single-member LLC, C Corporation, or S Corporation. Enter the entity's name as shown on the entity's tax return on line 1 and any business, trade, or DBA name on line 2.
  • Other entities. Enter your name as shown on required U.S. federal tax documents on line 1. This name should match the name shown on the charter or other legal document creating the entity. You may enter any business, trade, or DBA name on line 2.
  • Disregarded entity. For U.S. federal tax purposes, an entity that is disregarded as an entity separate from its owner is treated as a “disregarded entity.” See Regulations section 301.7701-2(c)(2)(iii). Enter the owner's name on line 1. The name of the entity entered on line 1 should never be a disregarded entity. The name on line 1 should be the name shown on the income tax return on which the income should be reported. For example, if a foreign LLC that is treated as a disregarded entity for U.S. federal tax purposes has a single owner that is a U.S. person, the U.S. owner's name is required to be provided on line 1. If the direct owner of the entity is also a disregarded entity, enter the first owner that is not disregarded for federal tax purposes. Enter the disregarded entity's name on line 2, “Business name/parent name/disregarded entity name.” If the owner of the disregarded entity is a foreign person, the owner must complete an appropriate Form W-8 instead of a Form W-9.  This is the case even if the foreign person has a U.S. TIN.

BUSINESS/PARENT NAME/ DISREGARDED ENTITY NAME

If you have a business name, trade name, DBA name, or disregarded entity name, you may enter it on this line.

FEDERAL TAX CLASSIFICATION

From the drop-down options, select the appropriate U.S. federal tax classification of the person or entity listed above.  Please refer to the chart below for guidance.

Foreign Alien or Entity:  If you select this classification you will also need to complete and provide Form W-8 which can be found on the IRS website here.

IF the entity/person on line 1 is a(n) . . .

THEN select . . .

  • Corporation

Corporation

  • Individual
  • Sole proprietorship, or
  • Single-member limited liability company (LLC) owned by an individual and disregarded for U.S. federal tax purposes.

Individual/sole proprietor or single-member LLC

  • LLC treated as a partnership for U.S. federal tax purposes,
  • LLC that has filed Form 8832 or 2553 to be taxed as a corporation, or
  • LLC that is disregarded as an entity separate from its owner but the owner is another LLC that is not disregarded for U.S. federal tax purposes.

Limited liability company and enter the appropriate tax classification. (P= Partnership; C= C corporation; or S= S corporation)

  • Partnership

Partnership

  • Trust/estate

Trust/estate

TAXPAYER IDENTIFICATION NUMBER (TIN)

Select the appropriate TIN Type (i.e., Employer Identification Number or Social Security Number) and then enter your TIN in the appropriate box. If you are a resident alien and you do not have and are not eligible to get an SSN, your TIN is your IRS individual taxpayer identification number (ITIN). Enter it in the social security number box. If you do not have an ITIN, see How to get a TIN

If you are a sole proprietor and you have an EIN, you may enter either your SSN or EIN. However, the IRS prefers that you use your SSN.

If you are a single-member LLC that is disregarded as an entity separate from its owner (see Limited Liability Company (LLC) on this page), enter the owner’s SSN (or EIN, if the owner has one). Do not enter the disregarded entity’s EIN. If the LLC is classified as a corporation or partnership, enter the entity’s EIN.

Note: See the chart below for further clarification of name and TIN combinations.

How to get a TIN: If you do not have a TIN, apply for one immediately. To apply for an SSN, get Form SS-5, Application for a Social Security Card, from your local SSA office or get this form online at www.ssa.gov. You may also get this form by calling 1-800-772-1213. Use Form W-7, Application for IRS Individual Taxpayer Identification Number, to apply for an ITIN, or Form SS-4, Application for Employer Identification Number, to apply for an EIN. You can apply for an EIN online by accessing the IRS website at www.irs.gov/businesses and clicking on Employer Identification Number (EIN) under Starting a Business. You can get Forms W-7 and SS-4 from the IRS by visiting IRS.gov or by calling 1-800-TAX-FORM (1-800-829-3676).

Caution: A disregarded U.S. entity that has a foreign owner must use the appropriate Form W-8.

WHAT NAME AND NUMBER TO GIVE TO THE REQUESTER

For this type of account:

Give name and SSN of:

1. Individual

The individual

2. Two or more individuals (joint account)

The actual owner of the account or, if combined funds, the first individual on the account

3. Custodian account of a minor  (Uniform Gift to Minors Act)

The minor

4.  a. The usual revocable savings trust (grantor is also trustee)

     b. So-called trust account that is not a legal or valid trust under state law

The grantor-trustee

The actual owner

5. Sole proprietorship or disregarded entity owned by an individual

The owner

6. Grantor trust filing under Optional Form 1099 Filing Method 1 (see Regulations section 1.671-4(b)(2)(i)(A))

The grantor*

For this type of account:

Give name and EIN of:

7. Disregarded entity not owned by an individual

The owner

8. A valid trust, estate, or pension trust

Legal entity

9. Corporation or LLC electing corporate status on Form 8832 or Form 2553

The corporation

10. Association, club, religious, charitable, educational, or other tax-exempt organization

The organization

11. Partnership or multi-member LLC

The partnership

12. A broker or registered nominee

The broker or nominee

13. Account with the Department of Agriculture in the name of a public entity (such as a state or local government, school district, or prison) that receives agricultural program payments

The public entity

14. Grantor trust filing under the Form 1041 Filing Method or the Optional Form 1099 Filing Method 2 (see Regulations section 1.671-4(b)(2)(i)(B))

The trust

ADDRESS, CITY, STATE AND ZIP CODE

Enter your address (number, street, and apartment or suite number).  This is where the requester of this Electronic W9/W8 Form will mail your information returns. If a new address is provided, there is still a chance the old address will be used until the payor changes your address in their records.

ACH INFORMATION

Please provide your Automated Clearing House (ACH) information for payment receipt.  This payment method provides for a direct deposit of funds from LUC to your entity.  Should you elect to use this method of payment, please complete the Bank/Institution Name, Bank Identification/Routing Number, and Account Number fields. Please also attach documentation from your bank confirming these ACH instructions.  LUC will use this information to direct deposit your payments.

CONTACT INFORMATION

Please provide your contact information for the following (where applicable):

  • Principal Account Contact
  • Accounts Receivable and Credit
  • Sales Representative
  • Customer Service and Support
  • Send All Orders To

NORTH AMERICAN INDUSTRY CLASSIFICATION SYSTEM (NAICS #)

Provide your entity's 2-6 digit NAICS code.  The North American Industry Classification System is the standard used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy.

NAICS was developed under the auspices of the Office of Management and Budget (OMB), and adopted in 1997 to replace the Standard Industrial Classification (SIC) system. It was developed jointly by the U.S. Economic Classification Policy Committee (ECPC), Statistics Canada, and Mexico's Instituto Nacional de Estadistica y Geografia to allow for a high level of comparability in business statistics among the North American countries. The link below to a non-federal website does not imply endorsement of any particular product, company, or content. For more information relating to NAICS Classification, please visit: http://www.census.gov/eos/www/naics/.

DUN & BRADSTREET NUMBER

Please provide your Dun and Bradstreet Number if available/applicable.

If you are exempt from backup withholding and/or FATCA reporting, select from the drop down boxes the code that may apply to you.

  • Generally, individuals (including sole proprietors) are not exempt from backup withholding.
  • Except as provided below, corporations are exempt from backup withholding for certain payments, including interest and dividends.
  • Corporations are not exempt from backup withholding for payments made in settlement of payment card or third party network transactions.
  • Corporations are not exempt from backup withholding with respect to attorneys' fees or gross proceeds paid to attorneys, and corporations that provide medical or health care services are not exempt with respect to payments reportable on Form 1099-MISC.

The following codes identify payees that are exempt from backup withholding. Select the appropriate code from the drop down field(s).

Code

Description

1

An organization exempt from tax under section 501(a), any IRA, or a custodial account under section 403(b)(7) if the account satisfies the requirements of section 401(f)(2)

2

The United States or any of its agencies or instrumentalities

3

A state, the District of Columbia, a U.S. commonwealth or possession, or any of their political subdivisions or instrumentalities

4

A foreign government or any of its political subdivisions, agencies, or instrumentalities

5

A corporation

6

A dealer in securities or commodities required to register in the United States, the District of Columbia, or a U.S. commonwealth or possession

7

A futures commission merchant registered with the Commodity Futures Trading Commission

8

A real estate investment trust

9

An entity registered at all times during the tax year under the Investment Company Act of 1940

10

A common trust fund operated by a bank under section 584(a)

11

A financial institution

12

A middleman known in the investment community as a nominee or custodian

13

A trust exempt from tax under section 664 or described in section 4947

The following chart shows types of payments that may be exempt from backup withholding. The chart applies to the exempt payees listed above, 1 through 13.

IF the payment is for . . .

THEN the payment is exempt for . . .

Interest and dividend payments

All exempt payees except for 7

Broker transactions

Exempt payees 1 through 4 and 6 through 11 and all C corporations. S corporations must not enter an exempt payee code because they are exempt only for sales of non-covered securities acquired prior to 2012.

Barter exchange transactions and patronage dividends

Exempt payees 1 through 4

Payments over $600 required to be reported and direct sales over $5,000

Generally, exempt payees 1 through 5

*However, the following payments made to a corporation and reportable on Form 1099-MISC are not exempt from backup withholding: medical and health care payments, attorneys’ fees, gross proceeds paid to an attorney reportable under section 6045(f), and payments for services paid by a federal executive agency)

Payments made in settlement of payment card or third party network transactions

Exempt payees 1 through 4

Exemption from FATCA reporting code: The following codes identify payees that are exempt from reporting under FATCA. These codes apply to persons submitting this form for accounts maintained outside of the United States by certain foreign financial institutions. Therefore, if you are only submitting this form for an account you hold in the United States, you may leave this field blank. Consult with the person requesting this form if you are uncertain if the financial institution is subject to these requirements. A requester may indicate that a code is not required by providing you with a Form W-9 with “Not Applicable” (or any similar indication) written or printed on the line for a FATCA exemption code.

Code

Description

A

An organization exempt from tax under section 501(a) or any individual retirement plan as defined in section 7701(a)(37)

B

The United States or any of its agencies or instrumentalities

C

A state, the District of Columbia, a U.S. commonwealth or possession, or any of their political subdivisions or instrumentalities

D

A corporation the stock of which is regularly traded on one or more established securities markets, as described in Regulations section 1.1472-1(c)(1)(i)

E

A corporation that is a member of the same expanded affiliated group as a corporation described in Regulations section 1.1472-1(c)(1)(i)

F

A dealer in securities, commodities, or derivative financial instruments (including notional principal contracts, futures, forwards, and options) that is registered as such under the laws of the United States or any state

G

A real estate investment trust

H

A regulated investment company as defined in section 851 or an entity registered at all times during the tax year under the Investment Company Act of 1940

I

A common trust fund as defined in section 584(a)

J

A bank as defined in section 581

K

A broker

L

A trust exempt from tax under section 664 or described in section 4947(a)(1)

M

A tax exempt trust under a section 403(b) plan or section 457(g) plan

Note: You may wish to consult with the financial institution requesting this form to determine whether the FATCA code and/or exempt payee code should be completed.

To establish to the withholding agent that you are a U.S. person, or resident alien, sign the W9/W8 Form electronically by typing your full name in the Signature of the Authorized Representative field near the bottom of the online form and submitting the completed electronic form.  Please note that you may be requested to electronically sign by the withholding agent even if item 1, 4, or 5 below indicates otherwise.

For a joint account, only the person whose TIN is shown in the Tax Payer Identification Number on the Electronic W9/W8 Form should digitally sign (when required). In the case of a disregarded entity, the person identified by Name on the W-9 Form must sign. Exempt payees, see Exempt payee code earlier.

Signature requirements: Complete the certification as indicated in items 1-5 below:

  1. Interest, dividend, and barter exchange accounts opened before 1984 and broker accounts considered active during 1983. You must give your correct TIN, but you do not have to sign the certification.
  2. Interest, dividend, broker, and barter exchange accounts opened after 1983 and broker accounts considered inactive during 1983. You must sign the certification or backup withholding will apply. If you are subject to backup withholding and you are merely providing your correct TIN to the requester, you must cross out item 2 in the certification before signing the form.
  3. Real estate transactions. You must sign the certification. You may cross out item 2 of the certification.
  4. Other payments. You must give your correct TIN, but you do not have to sign the certification unless you have been notified that you have previously given an incorrect TIN. “Other payments” include payments made in the course of the requester’s trade or business for rents, royalties, goods (other than bills for merchandise), medical and health care services (including payments to corporations), payments to a nonemployee for services, payments made in settlement of payment card and third party network transactions, payments to certain fishing boat crew members and fishermen, and gross proceeds paid to attorneys (including payments to corporations).
  5. Mortgage interest paid by you, acquisition or abandonment of secured property, cancellation of debt, qualified tuition program payments (under section 529), IRA, Coverdell ESA, Archer MSA or HSA contributions or distributions, and pension distributions. You must give your correct TIN, but you do not have to sign the certification.

Accounts Payable Department
820 North Michigan Avenue
WTC, Lewis Tower-Room 602
(312)915-8760
Accounts-Payables@luc.edu