If I am working as a bartender or server in a restaurant, why would they ask us to fill out a form w-9?
Asked by C L

Best Answer:
Because they are going to pay you as an independent contractor, not an employee. In your business, I would guess it is highly illegal. The law is pretty clear on the distinction between employee/contractor. To be a bartender you go to the company's place of business, use the companies assets (liquor, glasses, napkins, etc) and the company directs your schedule. You can't just wander in when you want, leave when you want. You are not a legitimate W-9 contractor. My guess is that the company is trying to avoid being a real employer. They don't want to pay 7.65% social security, nor unemployment (1-10%), nor workers comp, nor any of the other employer paid taxes/expenses on employees. So, you will end up with a huge tax bill on your own "wages" at year end. As a W-9 contractor, you have to save 100% of your taxes, you will be responsible for Self Employment tax (social security) which is 15.3% of income. Sounds to me like the company is on shaky financial grounds. Sit down with your boss and find out what the heck is going on. And start looking for a new job, because in this economy, your boss will surely find someone dumb enough to sign up for this.

yes - they should be having you fill out an I-9 and a W-4, now a W-9 - what did they say they were paying you on an hourly rate? In that type of business they are required to take out FICA taxes on tips also and they can't do that if they are paying you as a contractor - that bar owner is asking for big time IRS problems
Answered by Dr. Deth