W-9 Collection Instructions
PURPOSE
Section titled “PURPOSE”All athletes represented by NILEMS who earn NIL compensation must have a completed IRS Form W-9 on file. This is required to:
- Issue 1099-NEC forms for annual earnings of $600 or more
- Comply with IRS reporting requirements
- Process payments via direct deposit or check
- Maintain accurate financial records
WHEN TO COLLECT
Section titled “WHEN TO COLLECT”- New Athletes: Collect W-9 during onboarding, before any deals are executed
- Existing Athletes: Verify W-9 is current at the start of each calendar year
- Changes: Collect updated W-9 if athlete’s legal name, address, or tax ID changes
COLLECTION PROCESS
Section titled “COLLECTION PROCESS”Step 1: Provide the Form
Section titled “Step 1: Provide the Form”Provide the athlete with IRS Form W-9 (Request for Taxpayer Identification Number and Certification).
Download: https://www.irs.gov/pub/irs-pdf/fw9.pdf
Step 2: Instruct the Athlete
Section titled “Step 2: Instruct the Athlete”Fields to complete:
- Line 1 — Name: Full legal name as shown on tax return
- Line 2 — Business name: Leave blank (unless athlete has an LLC)
- Line 3 — Tax classification: Check “Individual/sole proprietor or single-member LLC”
- Line 4 — Exemptions: Leave blank
- Lines 5-6 — Address: Current mailing address
- Part I — TIN: Social Security Number (SSN)
- Part II — Certification: Sign and date
Step 3: Receive and Verify
Section titled “Step 3: Receive and Verify”- Full legal name provided (Line 1)
- Tax classification checked (Line 3)
- Address complete (Lines 5-6)
- SSN or EIN provided (Part I)
- Form signed and dated (Part II)
- Signature date within current calendar year
Step 4: Secure Storage
Section titled “Step 4: Secure Storage”- Store in secure, encrypted location (not plain email)
- W-9s contain SSNs — treat as highly sensitive PII
- Retain for 4 years after last tax year in which form was used
1099-NEC ISSUANCE
Section titled “1099-NEC ISSUANCE”At year-end, issue IRS Form 1099-NEC to each athlete who earned $600 or more.
Deadlines:
- January 31: Furnish 1099-NEC to athlete
- January 31: File with IRS (or March 31 if electronic)
Report in Box 1: Total NIL compensation paid to athlete (after agency commission)
COMMON QUESTIONS
Section titled “COMMON QUESTIONS”Q: Athlete refuses to provide W-9? A: Withhold 24% of compensation (backup withholding) per IRS rules.
Q: Athlete has an LLC? A: Use LLC’s EIN, check “Single-member LLC” on W-9. Issue 1099 to LLC.
Q: International student? A: May have ITIN instead of SSN. Consult tax professional.
CHECKLIST
Section titled “CHECKLIST”- W-9 form provided to athlete
- Instructions sent via email
- Completed W-9 received
- All fields verified
- Stored in secure/encrypted location
- Athlete file updated
- Athlete informed of tax obligations
- Financial literacy resources offered