How TIN Validation Can Help You Find the Right Contractors
TIN Matching + W-9 Verification |August 18, 2022
Did you know TIN validation can help your organization avoid working with illegitimate or ill-intentioned business entities and contractors? Here’s how.
You may think of Taxpayer Identification Number (TIN) validation as a step to take when your organization begins work with a new contractor and needs to ensure their TIN matches that in the Internal Revenue Service (IRS) database. But a TIN matching programis much more than that. Working with a competent compliance and risk management partner, like PlusOne Solutions, allows you to implement a TIN Validation program that keeps the right contractors in your network and the wrong ones out.
4 Advantages A TIN Validation Program Brings to Your Organization
Prevents contractors from re-entering your network
It may not seem like a problem at first to have contractors that your organization has worked with before re-entering your network, if you have had a bad experience with contractors in the past, would you want to experience that again? Whether the contractor provided a sub-standard level of service or committed a criminal act, TIN validation is one way to ensure they aren’t providing products or services for your customers again by attempting to rejoin your network under a different name or by pretending to be a different company since their TIN would remain the same or they may provide a fake TIN.
When you work with a large number of geographically-dispersed contractors, collecting and verifying TINsis an effective way to keep the wrong contractors out of your network.
Identifies ownership changes
It’s not unusual for business entities to change ownership as years pass by. Owners may sell their business to larger companies, small business owners retire and sell their business to new ownership, and various other scenarios may occur. If your organization has been contracting with a business for years, you may not know who the new ownership is without a TIN matching program.
When the business changes hands, they must submit new paperwork and tax forms that include the TIN and information of the new owner. Verifying the information contained in this paperwork allows your organization to have a clear picture of who are working with, which is important to mitigating your risk and making informed decisions.
Saves time and money
If your organization isn’t outsourcing your TIN validation program, the task falls on the shoulders of your administrative or legal departments; or worse, it may not be accomplished at all which may lead to fines and IRS involvement that can otherwise be avoided
Leaning on the skills and knowledge of an experienced contractor compliance partner ensures that the responsibility is removed from your internal team and that the job is done thoroughly and consistently every time a contractor is onboarded.
Provides increased visibility and reporting
Not only does PlusOne Solutions’ TIN validation program accomplish an essential and time-consuming task for your organization, but it also offers an added layer of visibility and reporting to your compliance program. When you have a network made up of hundreds or thousands of contracted individuals, you need a higher level of reporting to make sure they are meeting your standards. This program gives that level of reporting.
Checking TINs is an effective way to verify that a contractor or company that you are bringing into your organization’s contractor network is legitimate. Legitimate companies pay taxes and are registered with the IRS and assigned a TIN that matches their business name. Omitting this step as a part of your contractor onboarding process could mean that you later find out that the company isn’t legitimate through other means.
Ready to Make Contractor Compliance One of Your Organization’s Strengths?
PlusOne Solutions has been making safer work environmentsfor the in-home service industry for over 17 years. We strive to create and maintain meaningful relationships with our customers by bringing them industry-leading services and excellent performance. Contact us todayto learn more about TIN validation and our other contractor compliance solutions.
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