Question concerning backup witholding

I wish to work as an independent agent for a company selling pre-paid legal services.

To work with them, it's required that I fill out a W9, where I need to certify that I'm not subject to backup withholding. Unfortunately, I had to draw a line through that question, because I AM subject to witholding.

The company's finance person was kind enough to tell me that she's not even sure if it's legal for them to refuse to work with me, simply because they'd have to withhold a portion of any commission I made, working with them. (31%). They'd rather just wait until I've worked things out with the IRS (at the beginning of 2004, hopefully), but they haven't said flat out "no, we won't work with you now", presumably, because they don't know if they CAN say that.

I, of course, would rather start selling, and making money, now.

So, can anyone tell me: can an applicant to be an independent agent/broker, who would receive commission checks as his only form of compensation, be refused by a company solely because he is subject to backup withholding, and would have to have a percentage of his commissiion witheld?

Thanks in advance! I appreciate your help.

Unfortunately, what you don't know and haven't known most of your adult life is that you are not subject and have never been subject to withholding. You should do research on this fact, but I have researched the matter and no citizen is subject to backup withholding. Paying taxes is voluntary, something the gov't has never wanted any of us to realize. If you want to continue paying taxes by all means do so, but that company is really giving you an opportunity to no longer pay taxes.

I guess why pay for prepaid legal services when you can come here! If you are an independent consultant then the rules are completely different tnan if you were an employee. I think that the W9 is supposed to certify that you are not subject to backup witholding and that doesn't mean that they will withhold money from you since you are performing services as an independent consultant. Are they saying that they are going to withhold money from your services? That doesn't make sense as you are not an employee of the company. Please reply so we can know what is going on because that doesn't sound right.

Originally posted by earlyspring
I wish to work as an independent agent for a company selling pre-paid legal services.

To work with them, it's required that I fill out a W9, where I need to certify that I'm not subject to backup withholding. Unfortunately, I had to draw a line through that question, because I AM subject to witholding.

The company's finance person was kind enough to tell me that she's not even sure if it's legal for them to refuse to work with me, simply because they'd have to withhold a portion of any commission I made, working with them. (31%). They'd rather just wait until I've worked things out with the IRS (at the beginning of 2004, hopefully), but they haven't said flat out "no, we won't work with you now", presumably, because they don't know if they CAN say that.

I, of course, would rather start selling, and making money, now.

So, can anyone tell me: can an applicant to be an independent agent/broker, who would receive commission checks as his only form of compensation, be refused by a company solely because he is subject to backup withholding, and would have to have a percentage of his commissiion witheld?

Thanks in advance! I appreciate your help.

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Could a company refuse to hire me when I disclose backup withholding?

After a couple years living by my wits, I just received a job offer. Now, I have to fill out all the paperwork. I'm worrying that when I disclose that I am subject to backup withholding, the job offer will be withdrawn. Is an employer within its legal rights to discriminate on that basis? For what it's worth, the employer in question is a city. Thanks for any advice.

cece, frankly, I'm not entirely sure what you mean by "backup withholding." Do you mean a dollar amount over and above the customary withholding based on the tax tables? If that's the case, I can't imagine that your employer would care. It's a one-time data entry into the payroll software until such time as you change your withholding. I've hired plenty of individuals who wanted/needed additional monies withheld for tax purposes.